AS per our PO terms and condition any statutory variation after contractutal delivery date ( CDD) is to be borne by seller
The rate of basic excise duty has been changed from 8% to 10% wef 26.02.10.
As per PO terms , in cases where CDD was on or prior to 26.02.10 but material dispatched after that that ( eg in March). Seller is giving us invoice of 10% excise duty but we are paying him only 8% as per PO terms
Query is whether we can take the credit of whole 10% in such cases or not or it will be restricted to payment amount of 8%.
10 July 2010
In case of inputs and capital goods, there is no requirement that the tax must be paid to be eligible to take credit.
Once the inputs/capital goods are received at your factory, supported by the invoice, you are eligible, not withstanding whether payment is made in full subsequently.
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