Cenvet Cerdit

[Ranjeet Sao]

Some party purchase Crusher machine with excise duty paid. The party rent to this crusher on third party. Bill generate with service tax to party on service of renting in immovable property. While payment on service tax, the utilize cenvet credit on capital goods i.e. 50% current year and 50% next years. Is this right ?Some party purchase Crusher machine with excise duty paid. The party rent to this crusher on third party. Bill generate with service tax to party on service of renting in immovable property. While payment on service tax, the utilize cenvet credit on capital goods i.e. 50% current year and 50% next years. Is this right ?

AI Summary

CENVAT Credit on Crusher Machine: 50% Utilization Allowed in Current Year, 50% in Next Year for Immovable Property Rental. A party purchased a crusher machine with excise duty paid and rented it out, generating a bill with service tax for renting an immovable property. The party inquired if they could utilize CENVAT credit on capital goods, using 50% in the current year and 50% in the next year. One respondent questioned the clarity and repetition of the query, while another explained that for immovable crushers, CENVAT credit can indeed be availed 50% in the current year and 50% in the subsequent year.