Reversal of cenvat in case of capital goods rented out
This query is : Resolved
17 August 2013
Dear Experts
My query is whether there is a liablity to reverse Cenvat Credit on capital goods which are rented out to other company
My query is whether there is a liablity to reverse Cenvat Credit on capital goods which are rented out to other company
18 August 2013
If Capital goods are removed for providing an out put service then the CENVAT credit is not required to be reversed. Please refer first proviso to rule 3(5) of the Cenvat Credit rules 2004
21 August 2013
ED is dependent on movement. If the CG have not moved and you are letting it out- it maybe liable for service tax. No need to reverse in such a case.
If removed from the premises, then liable to reverse the proportionate duty- allowed to retain 2.5% of credit per quarter after initial receipt. If machinery 5 years old then 50% of duty credit availed to be debited.
If removed from the premises, then liable to reverse the proportionate duty- allowed to retain 2.5% of credit per quarter after initial receipt. If machinery 5 years old then 50% of duty credit availed to be debited.
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
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Booth for sales promotion
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- FEMA regulation Act. for inward remitance
- GST ON TRAVELLING BILLS
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
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
