Doubt about availing 50% cenvat credit

 

Dear Experts,
 
We have purchased one Machinery on 25th March, 2011 and got CENVAT credit of 2Lakhs.
 
Now, Is it right to claim 50% of CENVAT against Excise duty payable for FY 2010-11, since the assets is purchased just before 1week from the end of Financial Year?
 
Am I eligible to take balance 50% CENVAT credit to setoff the Excise duty Payable for April 2011? Or I need to wait 1year from the date of purchase to avail CENVAT input of balance 50%?
 
Kindly clarify..
 
Thanks & Regards,
Sidhardh.
Replies (4)

Sir,

u can availe remain 50% in April-2011.

 

As per ccr 2004, credit of capital goods can be taken as and when assets received inthe factory for use it is not necessary to put to use that asset hence credit of up to 50% can be taken in f.y. 2010-11, and balance in april 11.

Cenvat credit can be taken 50% of the duty on capital goods as soon as they enter the premises.  So in your case you can claim 50% of the Cenvat Credit in F.Y.2010-11.  & the balance 50% you can claim in one or more subsequent years from F.Y.2011-12 & onwards

Dear Siddarth

You can avail the balance 50% in Apr-11.

Regards

HS Negi

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