Whether ADD CVD be taken as CENVAT

[Rabindra Mohanty]

Dear Sir

How can I treat in books of account when found a invoice with (value+ED/CVD Value+Ed Cess Value+H. Sec. ED. Cess+ADD CVD in case of manufacturing company purchasing capital goods.

 

Plz suggest me.

[Surender Gupta]

A manufacturer is eligible to take cenvat credit of CVD (additional duty equal to central excise) and SAD equal to 4%  where the goods are used as inputs or capital goods.

[YAGAY andSUN]

Further, on CVD & ON Cess you will get 50% CENVAT credit but on SAD @ 4% you will get full CENVAT credit in the first year itself.

AI Summary

Manufacturers Can Claim 50% CENVAT Credit on CVD & Cess; Full Credit on 4% SAD in First Year A query was raised about accounting treatment for invoices including various duties like CVD, ED Cess, and ADD CVD for a manufacturing company purchasing capital goods. One response clarified that a manufacturer can claim CENVAT credit for CVD and SAD at 4% when these goods are used as inputs or capital goods. Another response added that 50% CENVAT credit is available on CVD and Cess, while full CENVAT credit on SAD at 4% can be claimed in the first year.