Purchase from party with 100 percent discount. The party charges Excise duty of 12.36 percent of basic amount. But the basic value & Local tax is entered as 100 percent Discount.
Shall we account this bill only excise duty amount? Can we take cenvat input credit for the same.
Please clarify
Can CENVAT Credit Be Claimed on Excise Duty Paid for Discounted Purchases? Rules 2004 Explained. A discussion on a forum involves a query about a purchase made with a 100 percent discount, where excise duty of 12.36 percent is charged on the basic amount. The query seeks clarification on whether to account for only the excise duty amount and if CENVAT input credit can be claimed. Two responses confirm that CENVAT credit can be claimed if the inputs are used in manufacturing finished goods, provided the provisions of the CENVAT credit Rules, 2004 are followed. (AI Summary)
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