Cenvat Credit on Capital Goods, Central Excise

[Vivek anandhan]

Dear Expert

We are setting up a new manufacturing facility apart from our existing manufacturing industry. Any provision is there to avail 100% CENVAT credit on capital equipment (Plant & Machinery) on receipt basis.

Posts / Replies

[MADAN RAHEJA]

Dear Sir,In terms of Rule 4(2)(a) it has to be fifty percent of duty paid on such goods in same financial year and balance fifty percent in next financial year.Thanks

[Ganeshan Kalyani]

Sir, if you purchase capital goods on 31st March then you can take 50% on the same day and on 1st April you can take the balance 50%. Thus within two days you can avail 100% Cenvat credit. You may plan according. Thanks.

[KASTURI SETHI]

In terms of proviso to Rule 4 (2a) of Cenvat Credit Rules, 2004, inserted vide Notification No.6/2010-CE(NT) dated 27.2.10, an SSI unit can take full credit of duty paid on capital goods in the same year. Full credit can also be taken if the capital goods are to be removed as such in the same financial year.

[Vivek anandhan]

Thanks to all