Reversal of input credit proportionately on Exempted Sales
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 August 2010
Dear Experts,
One of my clients are required by the Excise department to reverse inputs availed on purchases to the extent of Exempted Sales. Can u tell me the law governing and procedure thereon
One of my clients are required by the Excise department to reverse inputs availed on purchases to the extent of Exempted Sales. Can u tell me the law governing and procedure thereon
30 August 2010
as per rule 6 of the cenvat credit rules 2004 the department is correct in asking you the reversal of inputs.
the actual procedure is,
1. maintain sepaerate register for receipt, consumtion and inventory of input & input service, and take the cenvat credit only on the manufature of the dutiable part.
2. if separate register are not maintained, then either pay an amount of 10% or 8% in case of maanufacture of service provider, of the amount of value of exempted goods, and take the whole credit, or pay an amount equivalent to the amount of cenvat credit attributable to input & input services subject to prior intimation to the suprintendent of central excise in writing.
the actual procedure is,
1. maintain sepaerate register for receipt, consumtion and inventory of input & input service, and take the cenvat credit only on the manufature of the dutiable part.
2. if separate register are not maintained, then either pay an amount of 10% or 8% in case of maanufacture of service provider, of the amount of value of exempted goods, and take the whole credit, or pay an amount equivalent to the amount of cenvat credit attributable to input & input services subject to prior intimation to the suprintendent of central excise in writing.
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
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- NRI starting business in India
- DIN reactivation
- GST not cancelled by tenant
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
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
