Cenvat Credit Elligibility

[Asked by Guest]

Dear Sir,

If we use some material fro R & D purpose in that case can we taken the cenvat Credit on that goods which we are using for R & D Purpose.

Swapneswar Muduli

[DR.MARIAPPAN GOVINDARAJAN]

If it is related to the services provided by you the same can be taken.

[Ganeshan Kalyani]

If the R&D is within the factory then you can avail the credit.

[Rajagopalan Ranganathan]

Sir,

If you carry out R & D activity within your factory premises and connected with manufacturing of dutiable final products, then you are eligible to take credit of duty paid on inputs used in such R & D activity. Otherwise you are not eligible.

[KASTURI SETHI]

In my views, if replies of all the experts are grouped into one, it will be a whole, complete and perfect reply.

AI Summary

Cenvat credit eligibility: inputs used in in house R&D qualify when linked to taxable manufacturing or taxable services.
Cenvat credit eligibility for inputs used in R&D arises where the R&D is carried out within the assessee's factory premises and is connected with the manufacture of dutiable final products, or where the R&D relates to services provided by the assessee; inputs used in R&D without such a connection to taxable manufacture or services are not eligible for credit.