Cenvat on capital goods
This query is : Resolved
16 April 2016
Dear Sir,
We are purchasing a Crusher- Machinery, bill including Excise duty, the same can be utilize and we can adjust the same how many years against payment of service tax. Please clarify the same.
Thanking you
With regards
S. Joshi
We are purchasing a Crusher- Machinery, bill including Excise duty, the same can be utilize and we can adjust the same how many years against payment of service tax. Please clarify the same.
Thanking you
With regards
S. Joshi
16 April 2016
CENVAT Credit on capital goods has to be availed in two stages except by SSI. 50% to be availed in first year when goods received and balance 50% in any subsequent years. SSI unit can avail 100% CENVAT in the very first year
Capital goods does not cover equipment or appliances used in office for manufacturer
Rule 2(a)(A)(1) clarify that equipment or appliances used in an office will not be eligible as “capital goods”. This restriction is only for manufacturer and not for service provider.
It is clarified that air conditioner, refrigerator and computer will be eligible if they are used in the manufacture of final product.
Computer though install in office but used for monitoring equipment involved in manufacturing process and movements of goods shall be eligible for CENVAT – Ruchi Health Food V. CCE[2007]
Duty paying documents eligible for CENVAT .
Depreciation under section 32 of income tax act not to be claimed on the excise portion of capital goods- Rule 4[4] of CENVAT Rule,2004,
Capital goods does not cover equipment or appliances used in office for manufacturer
Rule 2(a)(A)(1) clarify that equipment or appliances used in an office will not be eligible as “capital goods”. This restriction is only for manufacturer and not for service provider.
It is clarified that air conditioner, refrigerator and computer will be eligible if they are used in the manufacture of final product.
Computer though install in office but used for monitoring equipment involved in manufacturing process and movements of goods shall be eligible for CENVAT – Ruchi Health Food V. CCE[2007]
Duty paying documents eligible for CENVAT .
Depreciation under section 32 of income tax act not to be claimed on the excise portion of capital goods- Rule 4[4] of CENVAT Rule,2004,
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