Q: Lets take X Ltd is a 100 percent EOU. Y ltd is a normal company. Y ltd. purchased goods from X Ltd on 15/09/2013.
the bill contains excise duty as under taking hypothetical figures:
Basic Custom Duty(BCD) = Rs. 5000
CounterVreilly Duty(CVD) = Rs 2000
EC + SHEC + Spl. CVD. = Rs.500
Now the ques is will Y Ltd get the Credit Of Rs. 7500 ???
Reply with proper supporting
Can Y Ltd Claim Cenvat Credit on Purchases from 100% EOU? Credit Allowed for CVD, Not Basic Customs Duty. A query was raised regarding whether Y Ltd, a regular company, can claim Cenvat credit on goods purchased from X Ltd, a 100% Export Oriented Unit (EOU). The invoice included various duties: Basic Custom Duty (Rs. 5000), Countervailing Duty (CVD) (Rs. 2000), and other duties totaling Rs. 500. Responses clarified that Y Ltd can only claim credit for the CVD and additional duties, excluding customs duty and related cess. It was noted that credit on education cess and secondary education cess is no longer permissible, although it was allowed previously. (AI Summary)
TaxTMI 
TaxTMI 
