cenvat Credit on capital Goods below 10000 and above 10000 mix in one invoice

[Asked by Guest]

Dear Sir,

As per amendment of Cenvat credit rule-2004 we can take Cenvat Credit 100% on these capital Goods whose value is less than 10000.

My question .

In some cases we received 10 items out of 10 item two items value is more than 10,000 and rest 8 items value are below 10000 in these case how we can credit these Cenvat.

Regards

Swapneswar Muduli

[Rajagopalan Ranganathan]

Sir,

Ask your supplier to issue separate invoices in respect of items whose value is less than ₹ 10,000/- and in respect of items whose value is more than ₹ 10,000/-. Otherwise avail 50% of the credit in the first year and the remaining 50% in any of the following years.

[Ganeshan Kalyani]

Sir, please see the value of cenvat credit, if it is substantial then ask the supplier to send the revised bill. Otherwise it should treated as capital goods and credit should be taken in two equal instalments in two different financial year. Thanks.

[KASTURI SETHI]

I endorse the views of both experts. Practically, it will be convenient for maintaining books of accounts.

AI Summary

Cenvat credit on mixed-value capital goods: obtain separate invoices or spread credit into successive years.
When an invoice mixes capital goods below and above the prescribed threshold, taxpayers should request separate invoices so lower value items can be credited in full; if separate billing is unavailable, treat the purchase as capital goods and claim admissible Cenvat credit in equal instalments across successive financial years to reflect staged credit treatment.