TMI BlogCENVAT Credit (Amendment) Rules, 2011 - Various changesX X X X Extracts X X X X X X X X Extracts X X X X ..... he following shall be inserted, namely:- (1A) outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or ; (ii) in clause (d), after the words rate of duty , the words and goods in respect of which the benefit of an exemption under notification No. 1/2011-CE, dated the 1st March, 2011 is availed shall be inserted with effect from the 1st day of March, 2011; (iii) in clause (e), after the words and figures section 66 of the Finance Act , the following shall be inserted, namely:- and taxable services whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken. Explanation.- For the removal of doubts, it is hereby clarified that exempted services includes trading ; (iv) for clause (k), the following shall be substituted, namely:- (k) input means (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) of clause (105) of section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for- (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act , in so far as they relate to a motor vehicle except when used for the provision of taxable services for which the credit on motor vehicle is available as capital goods; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;‟; (vi) for clause (naa), the following shall be substituted with effect from the 1st day of March, 2011, namely:- (naa) manufacturer or producer , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion to write off fully has been made in the books of account then , the words and letters on which CENVAT credit has been taken is written off fully or partially or where any provision to write off fully or partially has been made in the books of account then shall be substituted with effect from the 1st day of March, 2011; 4. In rule 4 of the said rules,- (i) in sub-rule (2), in clause (a), after the words provider of output service the words, or outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory, may be inserted; (ii) after sub-rule (7), the following shall be inserted, namely:- 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 manufacturer of goods or the provider of output service by debiting the CENVAT credit or otherwise on or before the 5th day of the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to the manufacture of dutiable final products, excluding exempted goods, and their clearance upto the place of removal; (iii) for the provision of exempted services; and (iv) for the provision of output services excluding exempted services, and shall take CENVAT credit only on inputs under sub-clauses (ii) and (iv) of clause (a) and input services under sub-clauses (ii) and (iv) of clause (b). ; (iv) in sub-rule (3),- (a) for the word either , the words any one shall be substituted; (b) for clauses (i) and (ii), the following shall be substituted, namely:- (i) pay an amount equal to five per cent. of value of the exempted goods and exempted services; or (ii) pay an amount as determined under sub-rule (3A); or (iii) maintain separate accounts for the receipt, consumption and inventory of inputs as provided for in clause (a) of sub-rule (2), take CENVAT credit only on inputs under subclauses (ii) and (iv) of said clause (a) and pay an amount as determined under sub-rule (3A) in respect of input services. The provisions of sub-clauses (i) and (ii) of clause (b) and subclauses (i) and (ii) of clause (c) of sub-rule (3A) shall not apply for such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder sub-rule (3) shall be deemed to be CENVAT credit not taken for the purpose of an exemption notification wherein any exemption is granted on the condition that no CENVAT credit of inputs and input services shall be taken. Explanation I. - Value for the purpose of sub-rules (3) and (3A),- (a) shall have the same meaning as assigned to it under section 67 of the Finance Act , read with rules made there under or, as the case may be, the value determined under section 3 , 4 or 4A of the Excise Act , read with rules made thereunder. (b) in the case of a taxable service, when the option available under sub-rules (7), (7B) or (7C) of rule 6 of the Service Tax Rules, 1994, or the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007 has been availed, shall be the value on which the rate of service tax under section 66 of the Finance Act, read with an exemption notification, if any, relating to such rate, when applied for calculation of service tax results in the same amount of tax as calculated under the option availed; or (c) in case of trading, shall be the difference between the sale price and the purchase price of the goods trad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
