Quantam of capital goods

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G Sreeharsha (Querist)

09 June 2012 Sir,
I am Working as a AM-Finance in a new manfacturing company since commercial production not yet started in my company .

My Question is- Total cenvat on capital Goods are Rs 25,00,000/- and i take Rs 10,00,000/- in March-2012 and Rs.15,00,000/- in April-2012 as a Cenvat input on Capital Goods .To my Knowledge 50% of Capital Goods to be availed in present year and another 50% availed in next subsequent year means 50% on Capital Goods applicable when utilisation of Cenvat on Paying Excise duty for sale.
Is it Correct or Incorrect.

If it is Incorrect then how should i rectify my problem

Kindly respond my problem and do your best

Kishor Darole

Kishor Darole (Expert)

09 June 2012 Dear Sreearhsha,

Firstly, If you have total 25 Lacs credit of capital goods to avail, then you should avail 50% = 12.50 Lacs in FY 2011-12 i.e. Beore March-2012 and balance 12.50 Lacs in a current FY-2012-13.

To avail cenvat & utlisation, condition is, physically you should receive the goods in factory along with Cenvat copy.

You need to intimate to Excise office about starting of Trial Production and next Commercial Production with accounting of the same in DSA (RG-1) Register.

Hope, you are clarified.

Regards
Kishor Darole

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