Conditions for Allowing Cenvat Credit - Cenvat Credit Rules, 2004

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..... When to take Cenvat credit in relation to inputs? As per Rule 4(1), credit to be taken immediately on receipt of inputs. It is not necessary to take credit as soon as inputs are received in the factory. However manufacturer or service provider should take credit at the earliest. However the manufacturer or the provider of output services shall not .....

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..... f service provider receiving inputs / capital goods - Rule 4(1) Rule 4(2)(a) In case of capital goods used for generation of electricity for captive use within the factory 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 - Rule 4(2)(a) .....

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..... ling balance credit during the subsequent year in case of capital goods, physical presence is necessary? The capital goods must be in possession when availing balance of Cenvat credit on capital goods. Rule 4(2)(b) makes certain exceptions. Whether ownership of capital goods is necessary? No. See Rule 4(3) The Cenvat credit in re .....

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..... inging them in the factory or premises of service provider. Reversal and re-credit allowed in case goods returned after 180 days or 2 years as the case may be. Whether final products can be removed / sold directly from the premises of Job Worker Yes, subject to the prior permission. See Rule 4(6) Cenvat Credit on Input Services Wha .....

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