Time for Cenvat Credit

[Laxmaiah Vanamamula]

What is the time(Period Billing date to) Cenvat Credit Taken on Input/Capital Goods Bills one Year or 6 months?

[dinesh agrawal]

there is no prescribed time for availing CENVAT credit, hence it should be availed within reasonable period. In the case of ST, it may be one year and for CEX, it could be six months.

[Ramanujam Varadarajan]

For capital goods, upto 50% can be availed in the first year of purchase and balance in any subsequent year.  For input, there is no time limit in availing the credit.

[Snehal Kulkarni]

The rule 4 (1) of Cenvat Credit Rules 2004 states

...........The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service:.................

There are settled laws in these regards also.

There is no time bar for availment of cenvat credit on INPUT. But for CG, you have to take the 50% credit in the year of purchase and 50% in next FY

For ST, you have to seek permission to avail the cenvat credit beyond one year.

AI Summary

Cenvat credit time limit: inputs generally no time bar; capital goods credit staggered; service tax may require permission. No time bar exists for taking Cenvat credit on inputs, which may be taken immediately on receipt and availed within a reasonable period. Capital goods credit is to be taken in staged instalments, with part claimed in the year of purchase and the remainder in subsequent year(s). For service-tax-related credit, administrative permission is required to avail credit beyond the commonly accepted period under the applicable rules.