Capital goods less than 10,000/- per piece

[illayyear yanapu]

Dear sir,

We are under the business of Cable operator (MSO). We were import SET TOP BOX (STB) and the same was shown under Fixed Asset of our books of accounts and we will distribute the same to our local cable operator(LCO) by offering income under Activation & Installation against Set Top Box distribute to LCO and We also eligible to claim cenvat credit i.e.CVD on import.

Here, STB per unit cost while purchasing is of ₹ 2500 (Aprox.) Which is less than 10K as per new amendament.

Can we claim 100% cenvat credit on STB which is less than 10K per piece unlike 50% current year and remaining credit in subsequent financial years.

If we do so, shall we show STB fixed asset to STB input (revenue expenditure) under p&l A/c??

guide us..

Thank you.

Illayyear

AI Summary

Cable Operators Can Claim Full Cenvat Credit on Set-Top Boxes Under 10,000 as Inputs: Cenvat Credit Rules 2004 A cable operator business inquired about claiming full Cenvat credit on imported set-top boxes (STBs) costing less than 10,000 each, instead of the usual 50% in the first year and the remainder in subsequent years. They asked whether these STBs should be recorded as fixed assets or revenue expenditure in the profit and loss account. A respondent clarified that under the Cenvat Credit Rules, 2004, capital goods valued up to 10,000 per piece qualify as inputs, allowing for full credit in the first year. Another participant agreed with this interpretation, and the original inquirer expressed gratitude.