Cenvat Credit on spare parts ?

[Asked by Guest]

Dear Sir,

We have a few machines in our factory. Whenever there is some breakdown we procure spare parts for the same.

My query is :    is the cenvat credit of the spare to be treated as capital goods credit and taken 50/50  or can I simply take 100% credit ?

 

[JAMES PG]

Cenvat credit on Capital goods including it spares, accessories , components etc can be taken only to the extent of 50 % in the financial year in which it is received

[YAGAY and SUN]

According to the definition of the Capital Goods, under CENVAT credit Rules, 2004 as amended time to time, CENVAT Credit on Spares, Components can be availed even if these spares/components do not fall under the same tariff heading as of the capital goods.

As enumerated above by Mr. James, CENVAT credit on such spare parts/components, can be availed to the extent of 50% in the first financial year and the remaining 50% will be availed in the next financial year( but after installation of spare parts/components.

 

 

[Ashok Dhiman]

Cenvat credit under Cenvat credit Rules 2004  is only possible if it is amount to manufacturer that is also only to the extent of 50 in first year and balance subsequent F.Y

 

Ashok

AI Summary

Cenvat credit on spare parts requires phased claiming across financial years, with balance claimable after installation.
Cenvat credit on spare parts and components used with capital goods is allowable as capital goods credit: half the credit may be availed in the year of receipt and the balance in the next financial year, with the remaining claim subject to installation/putting to use; eligibility exists even if spares do not share the tariff heading of the capital good, and credit is available only to the extent that the input amounts to the manufacturer.