Cenvat Credit on Capital Goods

[Vivek anandhan]

Dear Expert

We are setting up a new manufacturing facility apart from our existing manufacturing industry. Any provision is there to avail 100% CENVAT credit on capital equipment (Plant & Machinery) on receipt basis.

[MADAN RAHEJA]

Dear Sir,In terms of Rule 4(2)(a) it has to be fifty percent of duty paid on such goods in same financial year and balance fifty percent in next financial year.Thanks

[Ganeshan Kalyani]

Sir, if you purchase capital goods on 31st March then you can take 50% on the same day and on 1st April you can take the balance 50%. Thus within two days you can avail 100% Cenvat credit. You may plan according. Thanks.

[KASTURI SETHI]

In terms of proviso to Rule 4 (2a) of Cenvat Credit Rules, 2004, inserted vide Notification No.6/2010-CE(NT) dated 27.2.10, an SSI unit can take full credit of duty paid on capital goods in the same year. Full credit can also be taken if the capital goods are to be removed as such in the same financial year.

[Vivek anandhan]

Thanks to all

AI Summary

Cenvat credit on capital goods: timing rules apportion claims across financial years, with narrow same-year exceptions. Cenvat credit on capital goods is apportioned by timing: generally fifty percent of duty paid may be claimed in the year of receipt and the remaining fifty percent in the next financial year; exceptions permit full credit in the same year for eligible small-scale industry units and where capital goods are removed as such within the same financial year.