TaxTMI 
TaxTMI 
WHAT IS MEAN BY CAPITAL GOODS IN CENTRAL EXCISE ACT AND HOW MUCH WE WILL TAKEN CREIDT IN CENTVAT REGISTER.
capital goods credit taken
20 Feb 2011 
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CENVAT credit on capital goods limited in the year of receipt, with remainder claimable later; full credit if cleared same year.
Capital goods encompass specified machinery, pollution control equipment, components, moulds, refractories, tubes, pipes and specified vehicles used in manufacture or for providing output services. CENVAT credit on capital goods received in a factory or service premises is restricted to fifty per cent of the duty in the year of receipt, with the balance in later years, except that full credit is allowable if the capital goods are cleared as such in the same financial year; additional duty credit is allowed immediately on receipt and full-year allowance may apply where exemption eligibility rules are met. (AI Summary)
Capital goods encompass specified machinery, pollution control equipment, components, moulds, refractories, tubes, pipes and specified vehicles used in manufacture or for providing output services. CENVAT credit on capital goods received in a factory or service premises is restricted to fifty per cent of the duty in the year of receipt, with the balance in later years, except that full credit is allowable if the capital goods are cleared as such in the same financial year; additional duty credit is allowed immediately on receipt and full-year allowance may apply where exemption eligibility rules are met. (AI Summary)