Condition to cenvat credit on capital goods

Dear Arun Kumar Sir

Please explain me the above condition with example of value.

Regards

Kumar

Dear Kumar,

yes, the condition is absolutely fit.

It says that you can claim either CENVAT credit on that part of capital goods or Depreciation u/s 32.... not both.. the same thing has been written in Income Tax Act also. EMPHASIS SHOULD BE MADE ON THE PART OF THE VALUE OF THE CAPITAL GOODS.....

let's take an example:- you purchased the capital goods of Rs. 1 lakh and E.D. imposed on it was Rs. 10000... so, it amounts to Rs. 110000.
Now, if the final product you are producing is dutiable, then take IT Dep. on Rs. 1 lakh and CCR on rem. 10000...
and if final product is not dutiable (as in normal cases) then take IT dept. on 110000....

Thanks and regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

Hi, I have an query that an SSI not registered under Excise but registered under Service Tax can claim CENVAT on Capital Goods?  If so, what is the process to avail this benefit?

Please help me to understand.

Regards,

Ravi Bala

ravib @ zentronlabs.com