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

Understanding BB ED and R&D Cess: Charges Explained for Truck Chassis Purchase, CENVAT Credit Not Applicable A user inquired about the meaning and applicability of BB ED and R&D Cess charges on an invoice for a truck chassis purchased from a company for manufacturing a Road Milk Tanker. The response clarified that these charges are related to Motor Vehicle Cess, which funds research and development and labor welfare. It was also noted that CENVAT credit cannot be availed for BB ED and R&D Cess.