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CENVAT

Service Tax (Legacy) 948 views 7 replies

Hello CA's,

        Is CENVAT credit is applicable for capital goods & also is this covered in the ipcc sylabbus?

Replies (7)

ya cenvat credit is available for capital goods 50% in the year of purchase and rem in following year

no yaar Central Excise act is not covered in IPCC syllabi.

thanx.....

Cenvat Credit can be availed and utilised on the taxes paid on Capital Goods even when they are partially used for providing non-taxable services or partially used for manufacture of exempted goods.

hi chamatkaribaba

the cenvat credit of capital goods shall not be allowed (take) which are used exclusively for production of exempted final product.

 

no not cover in ipcc

Originally posted by :pawan kumar
" hi chamatkaribaba
the cenvat credit of capital goods shall not be allowed (take) which are used exclusively for production of exempted final product.
 
"

  Hi Pawan, U are right. Cenvat credit on capital goods are not allowed if such capital goods are exclusively used for producing exempted goods.

Cenvat credit on capital goods are allowed if such capital goods are exclusively used for producing dutiable goods.

Cenvat credit on capital goods are allowed if such capital goods are used for producing both exempted goods and dutiable goods.


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