Unutilized Cenvat Credits

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AnandKumar (Querist)

19 February 2010 I am working in MNC,

Our Co. is engaging in Importing of Raw Materials & Capex from Outside India, We have huge amount of Unutilized Cenvat Credits available in the books,

whether Unutilised Cenvat Credits can set off in the follwing circumstances,

Company - A - Operation in Outside India
Company - B - Operation in India -Subsidiary of A
(MFG & supply to OEM Dom )
Company - C - Operation in India - Subsidiary of A
(MFG & supply to OEM Dom )

Company - A has 100% Shares in Company C & 60% Shares in Company B.

Whether Company C's Unutilised Cenvat Credits can be utilised by Company B. If Yes, Please let me know the Rules & Procedures to be followed.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 February 2010 Assuming that the companies in India are manufacturing excisable goods or providing taxable services, credit is available only ot the company and not to the subsidiaries. Only possibility for refund is if used up in export of goods or taxable services exported.

AnandKumar

AnandKumar (Querist)

19 February 2010 Dear Sir,

Thank you for your guidance,

I need some more explanation,

Company B & C is seperate entities but both are subsidiaries of A.

whether C Company's Unutilized credits can be utilized by B Company? i.e Cenvat credit transfer from C to B, is it possible? Please clarify.

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