CENVAT Credit by NBFC or Banking Co.

[PANKAJ GROVER]

As per amended CENVAT Credit Rules, 2011, NBFC or Banking Co is obligated to pay an amount equal to 50% of the CENVAT Credit availed. Whether they have to pay by cheque or they can utilize cenvat credit to pay the amount?

Regards

 

RAPG & Co.

AI Summary

NBFCs and Banks Can Use CENVAT Credit for Payment, Not Limited to 50% by Cheque as per 2004 Rules. A query was raised regarding whether Non-Banking Financial Companies (NBFCs) or Banking Companies must pay 50% of the CENVAT Credit availed by cheque or can utilize the credit itself for payment. One respondent clarified that they can pay either by cheque or by using the CENVAT credit, as per the CENVAT Credit Rules, 2004. Another participant noted a misunderstanding, explaining that NBFCs or Banking Companies are allowed to take only up to 50% of the credit, not obligated to pay 50% of it. A third respondent agreed with the first, confirming the possibility of using CENVAT credit for payment.