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Input credit

Ramshankar (Executive Internal Auditor) (198 Points)

03 March 2009

what is meant by Input credit

on which expenses (Capital exp or Operating exp) we can claim.

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4 Replies

Pratik K (Student) (3406 Points)
Replied 03 March 2009

SNEHASREE (ARTICLED ASSISTANT) (102 Points)
Replied 03 March 2009

HI INPUT CREDIT IS AVAILABLE ON 1.INPUTS PURCHASED FOR MANUFACTURE EX:VAT, EXCISE DUTY PAID ON PURCHASE OF GOODS(INPUTS). 2.ON CAPITAL GOODS PURCHASED FOR THE PURPOSE OF MANUFACTURE. 3.ON SERVICES WHICH IS IN RELATION TO MANUFACTURE.EX:SERVICE TAX PAID WHILE AVAILING VARIOUS SERVICES. ON INPUTS AND ON SERVICES WE CAN CLAIM 100% DURING THE SAME PERIOD.BUT ON CAPITAL GOODS ONLY 50% CAN BE CLAIMED DURING THE RELEVANT PERIOD AND THE BALANCE IN ONE OR MORE SUBSEQUENT PERIOD PROVIDED ASSET MUST BE IN POSSESSION. FOR AVAILING CENVAT CREDIT CREDIT IN RELATION TO EXCISE DUTY, CUSTOMS DUTY,SEVICE TAX CENVAT CREDIT RULES APPLY.REFER CENVAT CREDIT RULES FOR DETAILED CLARIFICATION.