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Doubt about availing 50% cenvat credit

956 views 4 replies

Sidhardh

Sr. Manager - Accounts

178 Points Joined June 2009

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)

Vasu S

Officer Commercial

75 Points Joined December 2008

Sir,

u can availe remain 50% in April-2011.

CA Garav Gulati

Management Consultant

106 Points Joined September 2010

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.

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

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