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Cenvat credit on material used for fabrication

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prachee

Indirect Tax

113 Points Posted on 28 February 2008

Hi Friends

I need a information ...can ny one can say ..whether we can avail cenvat credit on material use for fabrication of machinery which is used for manufaturing final product .

a) if it is regular fabrication

b) if it is one time fabrication.

If u have ny reference of decided case then it will be much useful.

Replies (2)

CA.D.K.BAYYAREDDY

Chartered Accountant

60 Points Posted on 28 February 2008

If yor final manufactured product is taxable, then tax paid on fabrication of machinery (input service) can be availed. thak you

Dayal

Gen. Manager - Indirect Taxation

3190 Points Posted on 28 February 2008

Yes it is an input and addition to the machinery which will assist in manufacturing, provided your final goods are subject to excise duty and or service tax