TaxTMI 
TaxTMI 
A Company failed to avail 50% Cenvat Credit on Capital Goods on the first year of procurement. Is it possible to avail the entire 100% in the subsequent years ?
Availment of CENVAT Credit on Capital Goods
01 Dec 2010 
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Cenvat credit timing: unclaimed first-year capital goods credit may be claimed fully in subsequent year with intimation.
Rule 4(2)(a) permits Cenvat credit on capital goods only up to fifty per cent of duty paid in the financial year of receipt, with the remaining fifty per cent claimable in the next financial year. If the initial fifty per cent was not availed in the year of purchase, the entire credit may be taken in the subsequent year provided the department is intimated. (AI Summary)
Rule 4(2)(a) permits Cenvat credit on capital goods only up to fifty per cent of duty paid in the financial year of receipt, with the remaining fifty per cent claimable in the next financial year. If the initial fifty per cent was not availed in the year of purchase, the entire credit may be taken in the subsequent year provided the department is intimated. (AI Summary)