18 July 2014
ITC on Capital Goods (not second hand) is also available. Further, it should not be used for manufacture of Exempted Goods (Other than zero rated sales) or for Electrical Power Generation including Captive Use. Further, the capital good on which ITC has been claimed should be used for a continuous period of 5 years, or else proportionate reduction in ITC is required to be made. Besides, ITC is not admissible on capital goods used in the execution of works contract. ITC is available to traders as well as manufacturers.
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