cenvat credit implication
This query is : Resolved
09 December 2010
My auditee is a manufacturing company and selling goods in india and export to nepal..
my query is that this company is exporting to nepal on rebate scheme and when they have exported the goods they have paid the excise duty on the same and they will claim subsequently rebate within 1 year from the CBEC.
They are paying monthly excise duty after availing cenvat credit on the same, but in cenvat credit both part of input are available like for good manufactured and sell in india and export goods.
so my question is once they are taking rebate, so they cant take cenvat credit on that input part which they are taking in production of export goods.
kindly reply...
Regards,
Chirag
my query is that this company is exporting to nepal on rebate scheme and when they have exported the goods they have paid the excise duty on the same and they will claim subsequently rebate within 1 year from the CBEC.
They are paying monthly excise duty after availing cenvat credit on the same, but in cenvat credit both part of input are available like for good manufactured and sell in india and export goods.
so my question is once they are taking rebate, so they cant take cenvat credit on that input part which they are taking in production of export goods.
kindly reply...
Regards,
Chirag
Madhukar N Hiregange
(Expert)
09 December 2010
The main idea is that taxes should not be exported - so at to make the goods from India competitive. Other country export , one does not pay the duty at all. exports under bond and credit availed is allowed otbe utilised fo rdomestic clearacnes or allowed as a refund.
The fact that the CED paid is refunded in full means that the input credits couldbe ustilised for domestic clearacnes.
The fact that the CED paid is refunded in full means that the input credits couldbe ustilised for domestic clearacnes.
aman kumar
(Expert)
09 December 2010
I aggree with your comments. Company may follow rule 18(pay duty and refund) or rule 19 take credit dont pay duty as per his options
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