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 ????
Arbind Aggarwal
(Expert)
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
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