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Cenvat credit on manufactured capital goods.

ravindra dave (Commercial Head) (32 Points)

17 October 2013

Dear Sir(s),

Please, clarify the canvat credit on capital goods (i.e. Storage tanks, fabricated tanks etc) which manufactured at plant location by contractors, referred capital goods to be manufactured by excisable m.s. plates, Welding rodes. How will be manage the all formalities ?

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2 Replies

kumar hattanna (Officer - Excise) (525 Points)
Replied 17 October 2013

Dear Sir, Your question quite is not clear, still as per my understanding, Storage tank used for factory it is treated as a capital goods, You can take cenvat credit 50% in the financial year, remaining 50% should be for next financial year. for any further query pls feel free to contact us. Kumarhattanna @ gmail.com Regards Kumar

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CA Chirag (Chirag Sheth & Associates) (1183 Points)
Replied 17 October 2013

hello dear,

with respect to capital goods which are procured , 50% credit can be availed in the year or receipt and balance can be used in subsequent years. hope it will clear.

thanks

chirag