BB ED and R&D Cess

[Guest]

Dear Sir,

We have purchase truck chasis from X Company for manufacturing of Road Milk Tanker.They have charge us duty as per below format in their invoice.

CVD             : 12%

BB ED        :  2%

R& D Cess : 0.125%

Cess (2% + 1%)

My question is what is the meaning of BB ED and R&D Cess .

Also confirm us when it will applicable and eligibility of its Cenvat Credit.

[YAGAY andSUN]

This pertains to Motor Vehicle Cess which is used for R&D and labour welfare.

You can't avail the CENVAT credit of BBED and R&D Cess.

[Guest]

Dear Sir,

Thanks for your message

AI Summary

BB ED and R&D Cess not eligible for CENVAT credit on motor vehicle purchases. BB ED and R&D Cess are motor vehicle cesses imposed for research and development and labour welfare; these cesses are separately charged on invoices for items like truck chassis and are not eligible for CENVAT credit, so they must be treated as non-creditable costs when procuring motor vehicle components.