Cenvat on branded readymade garments

EXICSE (Legacy) 693 views 2 replies

Hi All:

we are contract manufacturers of Branded Readymade Garments suppliying to various department stores across India.

Can CENVAT be claimed against Excise Duty discharged on Branded Readymade Garments. 

If yes, is there a diffrential rate of Excise Duty if CENVAT is claimed versus CENVAT is not claimed.

Replies (2)

If you are paying 1% duty cenvat credit is not admissible. If duty is paiod @ 5%, credit can be taken.

Thanks for your reply Mr Unikrishnan.

But on Branded Readymade Garments the Excise duty is neither 1%  nor 5%. 

The excise duty is 10% on 45% of MRP value, Effectively it works to 4.50% on MRP.

Kindly cite circular Ref no where 1% Excise Duty is cited without availing CENVAT credit.

 


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