TaxTMI 
TaxTMI 
Dear Experts,
We are hiring a DG set from another state. Now we are send back this DG set to the same party as the rental contract is completed. Pls advice the necessary documents required.
docs required to snd back the material
29 Oct 2014 
1 Reply 
968 Views Asked by
CENVAT credit denial on rented capital goods, with removal documented via delivery challan as the operative consequence.
CENVAT credit is not available for a DG set taken on commercial rent; Rule 4(3) permits credit only where capital goods are acquired on lease, hire purchase or loan agreement from a financing company. Since the DG set was hired under a rental contract, the hirer is ineligible to claim CENVAT credit and should remove or return the DG set using its own movement documents such as a delivery challan. (AI Summary)
CENVAT credit is not available for a DG set taken on commercial rent; Rule 4(3) permits credit only where capital goods are acquired on lease, hire purchase or loan agreement from a financing company. Since the DG set was hired under a rental contract, the hirer is ineligible to claim CENVAT credit and should remove or return the DG set using its own movement documents such as a delivery challan. (AI Summary)