SAD on Capital Goods, Central Excise

[Sharad Sonawane]

Dear Sir,

 

We have Purchased Capital Goods from First Dealer / Second Stage Dealer he shown SAD on his Invoice can we take Full Credit on SAD or 50 percent any notification on full credit SAD

Posts / Replies

[GANTI SARMA]

You can utilise 50 percent only even you taken 100 percent in books.

[Ashok Jogalekar]

You can avail 100 percent credit of SAD and use the same for payment of excise duty. SAD is nothing but in lieu of sales tax.

[Ashok Jogalekar]

To elaborate further on eligibility of 100 percent credit immediately on receipt of capital goods imported:-

as per the proviso 2 of the rule 4(2)(a) of Cenvat Credit Rules the cenvat credit of additional duty leviable under sub-section (5) of section 3 of the Customs Act, in respect of capital goods shall be allowed immediately on the receipt of the capital goods in the factory of the manufacturer.