Dear expert,
From 1st April 2016 definition of input includes all capital goods which have a value upto ten thousand rupees per piece hence we are eligible to avail 100% CENVAT credit input in first year only.
If in one invoice there are few capital goods which value is below 10000\piece and some capital goods have value more than 10000. Now my query is:
Are we need to take credit partly in capital goods and partly in input? If this is true then it will create lot of problem in availing CENVAT, record keeping and accounting of bills.
Please share your valuable views
Debate on CENVAT Credit Eligibility for Capital Goods Below 10,000 and Accounting Challenges Post-April 1, 2016 Update. The discussion revolves around CENVAT credit eligibility for capital goods valued below 10,000 per piece, as per the updated definition effective from April 1, 2016. Participants debate whether credit should be split between capital goods and input accounts when invoices include items of varying values. Concerns include accounting complexities, record-keeping, and compliance with government guidelines. Suggestions include using separate registers for different credit types and creating specific tax codes in accounting systems like SAP. The discussion also touches on the implications for manufacturers of excisable and non-excisable goods and the rationale behind the 10,000 limit. (AI Summary)
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