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??
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??
50% CENVAT can be claimed in First year..balance in subsequent years
https://wirc-icai.org/wirc_referencer/indirect%20tax/Cenvat%20Credit%20Rules.htm. Check the link for your Query
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.
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