Cenvat credit on capital goods

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Mayank (Querist)

15 February 2013 Hi
In our factory we have taken credit of capital goods supllied at factory in following Manner:
50% in 2012-13
50% in 2013-14

Our provision date of starting commercial production is april 2013.now my question is that can we utilise the credit of capital goods which was availed in 2012-13 for payement of excise duty for the production of 2013-14.further can we utilise 100% credit in 2013-14 or in 2013-14 or 2014-15?

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

15 February 2013 Dear Mayank
You can avail credit only after you will start getting production on that . As machine will be productive in the April 2013, than you can avail 50% of CENVAT credit in 2013-14 and 50% need to transferred to deffered CENVAT credit and can be avail only in 2014-15 .

And When filling ER-5 for annual installed capacity , don't include this machine also .

Thanks

Mayank

Mayank (Querist)

15 February 2013 Thank you very much sir but right now we are regularly file excise return ER-3 quarterly and in that we disclosed the credit on capital goods.
further if we start our production in march 2013 than what will be the effect?e.g.
Excise duty payable on production of march = Rs.500 and as per ER 3 return credit of capital goods availed in 2012-13 is Rs.1000.
Now my question is that can we carry forward balance credit of Rs.500/- to 2013-14.means total credit for 2013-14 will be Rs.1000+500=1500.

Is it possible?

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

15 February 2013 Yes you can carry forward you you balance credit .

Thanks

Mayank

Mayank (Querist)

16 February 2013 Thank you very much sir.

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