Cenvat credit on capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2012 Hello experts, please give your opinion on following.

My company is engaged in construction business (mainly in Govt. projects), as our most of works are exempted from service tax there is no question of taking CENVAT. But recently we have under taken few private works which are subject to Service Tax. Now my que. is-

If we have taken machinery on 01/08/2012 and paid excise duty on it(On 01/08/2012 we don't have any taxable projects on hand), can we take CENVAT credit of same in following situation:-

We got taxable project on 01/09/2012,

1.) If we don't use above machinery in taxable project.

2.) If we use above machinery in taxable project.

Prashanth

Prashanth (Expert)
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01 October 2012 Dear,

Will you be clear what are those taxable projects?

However,

In 2nd case you take Cenvat Credit upto 50% in this year and the balance in the further years.

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012

Taxable project means construction of building for private party or some other construction projects which are subject to Service Tax