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Cenvat credit

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Nagesh Midde

student

191 Points Posted on 21 June 2013

Dear Friends.

We are an SSI Unit manufacturing Aluminium Foils and sent Items to SEZs and EOUs. Thus we have around Rs.11 Lakhs CENVAT Credit. Now are going to do Exports while taking IEC Code. What my querry is how we obtain Cenvat credit while doing Exports. I Mean if we use Cenvat Credit mentioned earlier, can we use against Exports? (Is there any type of scheme like Duty rebate or anything.) Experts Kindly give clarification regading this. Whats the way to utilize our Cenvat Credit piled up. Is there any refund rules? Thanks in Advance.

Best Regards

Replies (1)

Z

Tax Consultation (US and India)

2970 Points Posted on 24 June 2013

As such there is no way you can encash it but you can try utilizing it

If goods are removed under the brand name of some other person then benefit of SSI exemption is not available and therefore you will be paying duty which you can offset with your excess credit. Basically targetting those areas on which SSI exemption can not be availed.

If you follow your current policy of buying goods by paying duty instead of buying duty paid goods (I think this benefit is available to you, I will cite it) then you will be stacking up the credit. Doing this side business will not only help you in utilizing the credit but can also help you in earning something.

I'll come back to this topic again I am still missing something important (another way)