Sir,
Our company get container from a manufacturer. We sent the sticker and it pasted on the container and they returned. Please advice whether we can claim the Cenvat on the cost of the Stickers?
Material cost 100000
Cost of sticker sent by us 5000
Total 105000
Cenvat @ 12.36% 12978
less: sticker cost 5000
Net value 107978
Vat 5% 5399
Net Payable 113377
Can we claim the cenvat on Rs.5000 @ 12.36% i.e. 618.
Excise duty should be charged on assessable value of rs. 100000/-. Duty will not charge on sticker supply by you. You are manufacturer then you can avail the cenvat credit on purchase sticker.
Dear Somyayan
It will form part of the Assessable value to the manufacturer and thus be chargeable to duty of excise. When the duty of excise has been charged on the amount including stickers , the same shoud be allowed as credit. In case the manufacturer had purchased the stickers as per your order then he would have definitely charged it to you as it would form part of cost to him , thus the whole amount would be chargeable to duty of excise and CENVAT credit of the whole amount including the duty paid on stickers shall be allowed.
CA Suraj Garg & Associates
New Delhi
CA Final
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AJAY SINGH AND CO LLP
Thane
CA Final
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CCI
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