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CENVAT credit on small capital goods (value below 10000)

Central Excise - Started By: - Yatin Bhopi - Dated:- 14-4-2016 Last Replied Date:- 7-5-2016 - Dear expert,From 1st April 2016 definition of input includes all capital goods which have a value upto ten thousand rupees per piece hence we are eligible to avail 100% CENVAT credit input in first year only.If in one invoice there are few capital goods which value is below 10000\piece and some capital goods have value more than 10000. Now my query is:Are we need to take credit partly in capital goods a .....

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uffer financial loss in the form of interest loss. You must avail the benefit what Govt. has given. - Reply By surya narayana - The Reply = Dear Friend,In my view, if the major portion of the value of the goods covered in the invoice is of high value items, it would be better to take under capital goods definition instead of taking in two accounts which will have a future consequences.In case the invoice have the break-up of small value items and high value, then you may take credit under both i .....

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ital or input) for ready reference for audit purpose. I think since there is no clear guidelines on the bills where both value are included we have no choice but to take part credit in input and partly in capital goods. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Yatin,To ensure compliance better to account CENVAT of Capital Goods < ₹ 10,000/- per piece in INPUT Register and others in CAPITAL Register.Principles has to be followed to ensure Compliance. You can mention Entry No of b .....

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be treated as input and the entire cenvat credit on that is allowed to be taken in the same year, I would prefer to suggest that the entire invoice value should be booked in RG23C. And while utilising the credit entire credit should be debited to the account by mentioning the reference of said amendment.And in Accounting package SAP, when Capital goods entry is passed usually, 50% of the credit is debited to 'Capital Cenvat Account' and balance 50% gets debited to 'Cenvat on Hold A/ .....

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