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Distribtion of cenvat credit

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This query is : Resolved

rajiv (Querist)

03 May 2011 BZ is having one manufacturing Plant,5 Sales offices and One head office.For administrative services BZ has taken one Centralized ISD registration and Service Tax Paid on Sales commission and common expenses of the company are distributed by company to manufacturing Plants.BZ has recently incurred following expenses:
1.Rs. 100 lacs has been spent on purchasing furniture for a recently opened Sales office.Excise duty of Rs. 10 lacs has been paid on furniture.Can this Excise duty be distributed under ISD registration to one of the manufacturing Plants.
2. Rs. 50 lacs has been spent on stationery purchase and Excise duty of Rs. 5 lacs is paid.This stationery will be used in Sales Offices and Head Office.Can this Excise duty be distributed to manufacturing plants.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

09 May 2011 Furniture credits not possible . Possibly stationery in factory usage possible . You may read the article in the article section for more information. Ideal is to read the amended cenvat credit rules.

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