B.Com M.Com CA Final CS Professional
54 Points
Joined September 2009
I totally agree with Mukesh. No CENVAT Credit can be booked as the mentioned motor car is not a capital asset as per the definition of Capital Asset nor it can be considered as Input & therefore no CENVAT Credit will be allowed. Only for specified service providers viz. 1) providing an output service of renting of motor vehicles 2) transportation of inputs & capital goods used for providing an output service & 3) courier agency service, the motor car can be considered as a Capital Asset & they are allowed to claim CENVAT Credit of duty paid on the same. As mentioned by you, the services of the director provided to a company (whether public or private) doesn't fall in any of the above mentioned category which allows the specified service providers to consider the motor vehicle as a Capital Asset. Hence no CENVAT Credit will be allowed in the above mentioned case.