Cenvat credit

cenvat credit  on capital goods not used for manufacturing cannot be claimed , correct me if wrong

Originally posted by : jim
	Hi. Under which circumstances is CENVAT credit on capital goods not available?   Thanks in advance...

cenvat credit on capital goods can not be claimed if ...........

1) final products / services are exempt

2) such capital goods are cleared with products

3) such capital goods are removed from the registereed premises.

Dear Kishore Use for manufacturing is not required for claiming cenvat credit...mere use at the place of manufacturing for any purpose shall entitle claiming of cenvat credit. Cenvat credit is not available if.. 1)if its removed from factory AS SUCH. 2)it its used in manufacturing of exempted goods. 3)if it is used at d place of office inside d factory for office works. 4)if it has been written off partially of fully or any provision has been made in d books of account for d same den d cenvat credit needs to be reversed.

cenvat credit on capital goods can not availed if you are manfacturing and clearing the exempted goods or exempted service and if you are in the ambit of SSI.

cenvat credit on capital goods can not availed if you are manfacturing and clearing the exempted goods or exempted service and if you are in the ambit of SSI.

 

Agreed with.......

Agree with roopka....however some correction are as follows

Dear Kishore Use for manufacturing is not required for claiming cenvat credit...mere use at the place of manufacturing for any purpose shall entitle claiming of cenvat credit. Cenvat credit is not available if.. 1)if its removed from factory AS SUCH. 2)it its used in manufacturing of exempted goods. 3)if it is used at d place of office inside d factory---- . 4)if it has been written off partially of fully or any provision has been made in d books of account for d same den d cenvat credit needs to be reversed.

(1) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer or provider of output service claims as depreciation under section 32 of the Income-tax Act, 1961( 43 of 1961).

(2) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications.

 

 

@ neeraj kumar....very nicely explained........thanx

Thanks Friends,

Really Appreciate Your Efforts...

hi,

I m agreed with the view of CA Karan Gogia,

Thanx

Sandeep Gupta

 

I have taken full credit on capital goods i.e. Refractories & C.I. Moulds. Is there any provision to charge interest & penality. I think these are not covered to take 50% cenvat credit.

Manoj ji

please first clear when u hve purchased this and returned so that i can answered you as per situation.

 

thanks & regards

neeraj soni