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 ?

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have repeated the query twice? How the crusher could be rented as immovable property? Your query is not clear.

[YAGAY and SUN]

Dear Ranjeet Sao,

As we understand the Crusher Industry, the crushers are of two types, Immovable and Mobile Crushers. CENVAT credit in the case of immovable crusher where ramp of bricks etc is made can be availed 50% in current year and 50% in subsequent year.

Regards,

YAGAY AND SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

CENVAT credit on capital goods: credit on immovable crushers may be apportioned across years when treated as immovable.
CENVAT credit on capital goods for crushers used in renting services may be claimed and apportioned across the acquisition year and a subsequent year where the crusher is factually treated as immovable (e.g., affixed with ramp or brickwork); if the crusher is mobile, that apportionment practice does not apply.