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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

Extract

..... d also that the manufacturer or the provider of output service shall not take CENVAT credit after 14[one year] of the date of issue of any of the documents specified in sub- rule (1) of rule 9.] (2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service 4[or outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory] 15[or in the premises of the job worker, in case capital goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service, as the case may be,] at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year: Provided that the CENVAT credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared as such in the same financial year. Provided further that the CENVAT credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, in re .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... ears.. (3) The CENVAT credit in respect of the capital goods shall be allowed to a manufacturer, provider of output service even if the capital goods are acquired by him on lease, hire purchase or loan agreement, from a financing company. (4) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer or provider of output service claims as depreciation under section 32 of the Income-tax Act, 1961( 43 of 1961). (5) 16[(a) (i) The CENVAT credit on inputs shall be allowed even if any inputs as such or after being partially processed are sent to a job worker and from there subsequently sent to another job worker and likewise, for further processing, testing, repairing, re-conditioning or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, chal I ans or memos or any other document produced by the manufacturer or the provider of output service taking the CENVAT credit that the inputs or the products produced therefrom are received back by the manuf .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... anufacturer to, - (i) another manufacturer for the production of goods; or (ii) a job worker for the production of goods on his behalf, according to his specifications: Provided that such credit shall also be allowed where jigs, fixtures, moulds and dies or tools falling under Chapter 82 of the First Schedule to the Excise Tariff Act, are sent by the manufacturer of final products to the premises of another manufacturer or job worker without bringing these to his own premises.] (6) The Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of the manufacturer of the final products who has sent the input or partially processed inputs outside his factory to a job-worker may, by an order, which shall be 22[valid for three financial years], in respect of removal of such input or partially processed input, and subject to such conditions as he may impose in the interest of revenue including the manner in which duty, if leviable, is to be paid, allow final products to be cleared from the premises of the job-worker. 7[(7) The CENVAT credit in respect of input service shall be allowed, on or after the d .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... ted in invoice, bill or, as the case may be, challan referred to in rule 9. 12[ Provided that the manufacturer or the provider of output service shall not take CENVAT credit after 18[one year] of the date of issue of any of the documents specified in sub-rule (1) of rule 9. 24[ except in case of services provided by Government, local authority or any other person, by way of assignment of right to use any natural resource ]] 25[Provided also that CENVAT Credit of Service Tax paid in a financial year, on the one-time charges payable in full upfront or in instalments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years: Provided also that where the manufacturer of goods or provider of output service, as the case may be, further assigns such right assigned to him by the Government or any other person, in any financial year, to another person against consideration, such amount of balance CENVAT credit as does not exceed the service tax payable on the consideration charged by him for such further assignment, shall be allowed in the same financial year] 28[ Provid .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications" 4. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.4.2011 5. Inserted vide notification no. 3/2011 CE(NT) dated 1.3.2011 w.e.f. 1.4.2011 6. Substituted vide notification no. 9/2011 CE(NT) dated 24.3.2011, before it was read as, “jewellery falling under heading 7113” 7. Substituted vide notification no. 13/2011 CE(NT) dated 31.3.2011 w.e.f. 1.4.2011, before it was read as, “(7) The CENVAT credit in respect of input service shall be allowed, on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in rule 9. 5[Provided that if any payment or part thereof, made towards an input service is returned, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount proportionate to the CENVAT credit availed in respect of the amount so returned. Explanation I.- The amount mentioned in this sub-rule, unless specified otherwise, shall be paid by the manu .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... CENVAT credit paid earlier subject to the other provisions of these rules:" 12. Inserted vide Notification No. 21/2014-Central Excise (N.T.) dated 11th July, 2014 w.e.f. first day of September, 2014 13. Inserted vide Central Excise - CE (NT) - 06/2015 - 01-03-2015 w.e.f. 1st day of March, 2015 14. Substituted vide Central Excise - CE (NT) - 06/2015 - 01-03-2015 w.e.f. 1st day of March, 2015, before it was read as, "six months" 15. Inserted vide Central Excise - CE (NT) - 06/2015 - 01-03-2015 w.e.f. 1st day of March, 2015 16. Substituted vide Central Excise - CE (NT) - 06/2015 - 01-03-2015 w.e.f. 1st day of March, 2015, before it was read as, “(a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit that the goods are received back in the factory .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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..... it was read as, "sub-rule" 20. Substituted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016, before it was read as, "Explanation.- For the removal of doubts, it is hereby clarified that an assessee shall be "eligible" if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year computed in the manner specified in the said notification did not exceed rupees four hundred lakhs." 21. Substituted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, “ 3[(b) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to,- (i) another manufacturer for the production of goods; or (ii) a job worker for the production of goods on his behalf, according to his specifications]” 22. Substituted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as, 'valid for a financial year” 23. Inserted vide Not. 13/2016 - Dated 1-3-2016, w.e.f. 1st April, 2016 24. Inserted vide Not. 24/2016 - Dated 13-4-2016 25. Substituted vide Not. 24/2016 - Dated 13-4-2016 before it was .....

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Rule 4 - Conditions for allowing CENVAT credit - Cenvat Credit Rules, 2004

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