Doubt regarding cenvat credit rule 3
This query is : Resolved
18 September 2008
Query no 1: Cenvat credit eligible for dta clerances by EOU/STP/EHTP as per cenvat credit rule 3 is
Assessable value * (1+BCD/400) * (CVD/100)
This formula holds good when there was an exemption of 75% of customs duty for such DTA clearances. But according to notification no 10/2008, customs duty exempted is only 50%. In this situation the credit calculated using formula given in rule 3 does not hold good as it considers the old exemption of 75%. In my opinion the formula should be
Assessable value * (1+BCD/200) * (CVD/100) What stand should i take in this situation ?
Query no 2: In the above formula (as per rule 3) , education cess and SHEC on (BCD+CVD) is not considered for the purpose of taking credit. It is apt by not considering BCD for the purpose of cenvat credit as it is not available as per rule3. But why EC and SHEC are not considered , as credit is also available on them as per rule 3 ????
Assessable value * (1+BCD/400) * (CVD/100)
This formula holds good when there was an exemption of 75% of customs duty for such DTA clearances. But according to notification no 10/2008, customs duty exempted is only 50%. In this situation the credit calculated using formula given in rule 3 does not hold good as it considers the old exemption of 75%. In my opinion the formula should be
Assessable value * (1+BCD/200) * (CVD/100) What stand should i take in this situation ?
Query no 2: In the above formula (as per rule 3) , education cess and SHEC on (BCD+CVD) is not considered for the purpose of taking credit. It is apt by not considering BCD for the purpose of cenvat credit as it is not available as per rule3. But why EC and SHEC are not considered , as credit is also available on them as per rule 3 ????
27 September 2008
Formula is 50 % of the duties. Means what you are saying is correct.
Reagrding Cess etc., there are disputes.
arbindaggarwal@yahoo.com
Reagrding Cess etc., there are disputes.
arbindaggarwal@yahoo.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
