Discussion on cenvat credit in excise

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Rule1: Short Title, Extent and Commencement 1. These Rules may be called CENVAT credit Rules, 2004. 2. They extend to whole of India, provided nothing contained in these rules relating to availment and utilization of credit of service tax shall apply to the state of Jammu & Kashmir 3. These rules shall come into force w.e.f 10th sept 2004

Cenvat

Rule:-2(k):-Input definition

All goods used in the factory by the maufacturer of the final product is eligible for cenvat credit,however light diesel ,high speed oil,petrol are not eligible for credit

cont:-

also any goods used for the buidling or for the purpose of laying foundation for support of capital goods are not eligible for credit

yes i brought notes of my frd i will follow tht pl explain one by one how to study this cenvat rules i will go through the book

cont:-

any goods which is used in guest house or for pesronal consumption of any employee ,even in such cases CC is not eligilbe.

Conclusion:-In case of  inputs...(expect which are not eligilble) must be used in the factory in relation to manuffactur of a exciable product for the purpsoe of availement of CC

Cenvat credit is the tax imposed on input goods is given as a set off in paying tax. so for that we are now discussing about the definiton of INPUT realting to cenvat act. am i right ?
@ Madhavi u too share the points...

@ Madhavi it is not Cenvat Act...it is Cenvat Rules

u tell me one rule i will discuss and later u discuss another rule

Rule:-3(4)

Rule 3(4) : Utilization of CENVAT credit The cenvat credit may be utilised for payment of a. Any duty of excise on any final products b. Any amount equal to cenvat crdit taken on inputs if such inputs are removed as such or after being partially processed or c. An amount equal to cenvat credit taken on capital goods if such capital goods are removed as such or d. Service tax on any out put service or e. An amount under rule 16(2) of central excise rules, 2002
hey we will continue monday thanks for joining . even i will prepare and come on monday

Rule:-3(5)

If a manufacturer or service provider removes any input or capital goods on which cenvat credit is claimed...from his factory or premises then in such they are require to pay amount which is as follows

 

contd...


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