Clarification of credit on capital goods

[Guest]

as per cenvat credit rules it is very must clear that you can claim benefit of capital good credit 50% in same year so u are eligible for 50 % in same year & balance portion for next year. so next year at any time till the prossession of that particular asset.

[Guest]

Yes, if at the time of availing balance of cenvat credit, you do not possess captioned capital goods, you are not entitled to avail that balance credit. However, it has few exceptions like consumables.

[Guest]

I think that there is no time limit specified for the purpose of taking cenvat Credit. So the same can be taken in any of further years.

AI Summary

Cenvat credit on capital goods: balance claim contingent on possessing the asset when availing credit, with limited exceptions. The clarification addresses timing and conditions for claiming cenvat credit on capital goods: a portion of credit may be claimed in the year of acquisition and the balance in subsequent years, but entitlement to the remaining balance is contingent on possessing the capital goods when availing that credit. Limited exceptions to the possession requirement, such as consumables, were noted, and there is reported uncertainty about whether an explicit time limit exists for taking the balance credit.