CENVAT CREDIT FROM SERVICE TAX OF CAPITAL GOODS

This query is : Resolved

VARUN.C.DAS

VARUN.C.DAS (Querist)
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31 January 2011 Dear sir,
What is the treatment for capital goods purchased which have Service tax content can i availed it in full in the first year or 50%
which one is right?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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31 January 2011 Capital goods credit used for manufacture of excise goods or used for provding a taxable service is eligible for credit @50. For SSI 100% credit is allowed in the year of pruchase.
If ST has been charged for the erection/ installation/ commissioning then the 100% of the ST can be availed.

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