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Cenvat credit on capital goods

Mehta Keyur (CA IPCC & Article Trainee) (33 Points)

12 November 2013

Hi......

1. How much is CENVAT Credit available on input tax credit paid on capital goods in the 1st year....????

2. Can manufacturer get benifit of input tax credit ? if yes , then how much??

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3 Replies

The Dude (Specialist- Finance) (303 Points)
Replied 12 November 2013

50% CENVAT can be claimed in First year..balance in subsequent years

Bhargav teja (CA-FINAL Student & Article Trainee) (153 Points)
Replied 12 November 2013

https://wirc-icai.org/wirc_referencer/indirect%20tax/Cenvat%20Credit%20Rules.htm. Check the link for your Query

Bhargav teja (CA-FINAL Student & Article Trainee) (153 Points)
Replied 12 November 2013

As per The Cenvat Credit rules, "The credit shall be taken only for an amount not exceeding 50% of the duty paid on capital goods in the same financial year in which capital goods is received. The balance 50% shall be taken in the subsequent financial year. However, in case of small scale manufacturer the credit of 100% of the duty can be taken in the year of receipt of capital goods" Small scale manufacturer Exemption to first clearances of specified goods upto a value of Rs. 1 Crore, if CENVAT facility not availed and exemption to goods captively consumed- Notfn. No. 8/03-CE dated 1.3.2003.