Reversal of cenvat in case of capital goods rented out
This query is : Resolved
CA Husain Saifee
(Querist)
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
CA Suresh Jain
(Expert)
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
Madhukar N Hiregange
(Expert)
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Tax on Amount transferred in HUF Account
- ETDS return q4 25-26
- Import Order Cancelled.
- Working on Gold wastage during Melting of old gold jewellery
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
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
