CENVAT CREDIT

[RAMESH ANANTHAKRISHNAN]

We are on the process of importing Capital Goods on payment of duty. As per my understanding we can avail 50% of the duty amount (CVD & SAD) during the current year and the balance in next year.

Kindly advise is there any changes in the procedures (i.e we can take 100% of the duty amount in the current year itself).

Regards

 

A.RAMESH

[Rama Krishana]

In case of SSI unit, 100% credit can be availed in first year itself.

For others, 50% in the first year and balance in the next years.

For more details, please read Rule 4(2) of CCR, 2004.

[Snehal Kulkarni]

 

You can avail 50% ( BED )Cenvat Credit in the year of receipt and Balance 50% in next financial year.

Cenvat Credit of SAD can be availed 100%.

[Guest]

As per the Indian Central Excise Norms there is eligiblity to claim 100% of the additional duty of custom on capital goods.[Sea Rule 4(2a) of the central excise rule 2004].

AI Summary

Cenvat credit on capital goods: SSI units may claim immediate full credit, others must use staged availment; SAD credit immediate. Cenvat credit on capital goods differs by taxpayer: small scale industry units may claim full credit in the year of receipt; other units must avail credit in a staged manner, with part in the year of receipt and the balance in the following year. Special Additional Duty paid at import is eligible for immediate cenvat credit. These timing and proportion rules are set out in the Central Excise regulations governing cenvat treatment of capital goods.