Indentification of Item(Capital/Input)

[Mridul Sethi]

How to verify the item as it is Capital or Input item(on the basis of Chapter Head or on the basis of its usage)........Mridul

[YAGAY andSUN]

You would have to go through the definition of inputs and capital goods as mentioned in the CENVAT credit Rules, 2004 as amended time to time. Check your bill of material to know the inputs/raw materail/components etc

AI Summary

CENVAT classification: determine whether an item is capital or input under CENVAT rules by examining its usage. Determine whether an item is a capital good or an input by applying the definitions in the CENVAT credit Rules and by examining the bill of materials, purchase invoices and the item's end use to verify its functional role in production or service supply.