TMI BlogCENVAT Credit by NBFC or Banking Co.X X X X Extracts X X X X X X X X Extracts X X X X ..... As per amended CENVAT Credit Rules, 2011, NBFC or Banking Co is obligated to pay an amount equal to 50% of the CENVAT Credit availed. Whether they have to pay by cheque or they can utilize cenvat credit to pay the amount? Regards RAPG Co. - Reply By ROHAN THAKKAR - The Reply = Dear Sir, NBFC or Banking Co can pay the amount either by cheque or by utilizing cenvat credit to pay the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount. In that regard, Explanation II to Rule 6(3) of Cenvat Credit Rules, 2004 clearly provides this which has been reproduced below: Explanation II. - The amount mentioned in sub-rules (3), (3A), (3B) and (3C), 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following month except for the month of March, when such payment shall be made on or before the 31st day of the month of March. Regards, Rohan Thakkar rohan@rthakkar.com - Reply By NEERAJ KUMAR, RANCHI - The Reply = It appears that your query is a little deviated. NBFC or Banking co. is allowed to take cenvat credit only upto 50% and not as you said that obligated to pay 50 % of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e credit. This is as per my understanding, if there is any further query you can mail me. - Reply By NEERAJ KUMAR, RANCHI - The Reply = It appears that your query is a little deviated. NBFC or Banking co. is allowed to take cenvat credit only upto 50% and not as you said that obligated to pay 50 % of the credit. This is as per my understanding, if there is any further query you can mail me. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By sv bhasker - The Reply = Sir, (3B) in explanation II is about reversal of credit by Banking co. If that is so, Banking co needs to take 100% credit in a month and pay back 50% of the credit either through debit of cenvat credit or otherwise ( means cash payment). Hence I I agree with the view expressed by Mr Rohan. - CENVAT Credit by NBFC or Banking Co. - Query Started By: - PANK ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AJ GROVER Dated:- 26-8-2011 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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