Dear Sir,
If a company claimed CENVAT credit on capital goods ,but later transferred the capital goods on lease (for 3 years ) to its subsidiary.Is it required to reverse the cenvat credit on the so called capital goods?
Now subsidiary is using the capital goods for manufacturing finished goods.
According to Act, it says that CENVAT credit should be reversed when the Capital goods are cleared.
My query is whether Parent company should reverse the CENVAT credit on Capital Goods ?
Will there be any other change if the same are let-out?
Suppose in let-out option ,no need of reversal is there ,then capital goods are not used by the parent co for manufacturing finished goods ,how can it not reverse the CENVAT credit?
Please Kindly Explain the Concept.
Thanking You
CAclubindia
