Cenvat credit availment

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This query is : Resolved

Dasharath Appa Pujari (Querist)
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29 January 2013 Dear All,

There was a sale by EOU unit to manufacturing unit in DTA.The invoice shows the following tax break up.

Invoice Amt - 100
BCD - 3.75
CVD - 12.45
ED Cess on CVD - Nil
SHE Cess on CVD - Nil
ED Cess 2% - 0.324
SHE Cess 1% - 0.162
Total DTA Duty - 16.686
ED Cess on DTA 2% - 0.33372
SHE Cess 1% - 0.16686
VAT @ 12.5% - 14.65

Pls clarify which tax portion can be availed as Cenvat Credit?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 February 2013 Rule 3(7)(a) of the Cenvat Credit Rules 2004 read with Notification No. 23/2003 dated March 31, 2003 specifies that Cenvat credit would be allowed for only 50% of the amount paid on countervailing duty for purchases made from the 100% EOU. As the components have been purchased in a domestic tariff area from the 100% EOU, Cenvat credit would be available up to 50% of the duty indicated in the invoices raised by the EOU.

for more info:

https://www.caclubindia.com/experts/formula-for-availing-cenvat-credit-in-case-of-100-eou-dta-410120.asp#.UQ93dPL7crc

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