CENVAT on Capital Goods at 50% or 100%

[Udaya Chandran]

How much CENVAT credit can we take  on Capital goods, 50% or 100% in the first year. Please reply with notification/amendment?

[YAGAY and SUN]

You can avail the CENVAT credit on Capital goods to the extent of 50% of the excise duty amount.  But in case of imported capital goods, you may avail the 100% CENVAT credit of SAD Portion and 50% of the CVD portion.  This aspect has been mentioned in the CENVAT credit Rules, 2004 as amended time to time.

AI Summary

CENVAT credit on capital goods limited by duty component; imported goods allow full SAD credit and partial CVD credit. CENVAT credit for capital goods is limited under the CENVAT Credit Rules, 2004: domestic capital goods attract a proportionate restriction commonly permitting credit of half the excise duty, while imported capital goods permit full credit of the Special Additional Duty component and a proportionate (half) credit of the Countervailing Duty component.