CENVAT credit on small capital goods (value below 10000)

[Yatin Bhopi]

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

AI Summary

Treatment of small-value capital goods as input credit requires apportionment and separate accounting for mixed invoices.
Where an invoice contains both capital goods treated as input (qualifying small-value items) and higher-value capital goods, CENVAT credit must be apportioned: credit for qualifying small-value items is taken to the input credit account, while credit for higher-value items is accounted under capital goods, necessitating separate ledger entries, registers, and supporting invoice references or tax codes to ensure compliance and auditability.