TaxTMI 
TaxTMI 
We (a DTA unit) purchase some materials from an EOU uni. What Cenvat credit will be available to us? Is it as per Rule 3(7) or as per proviso to Rule 3(7)?
Regards
Cenvat credit availability
25 Mar 2008 
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Cenvat credit calculation must follow Rule 3(7) formula, adjusting assessable value for basic customs duty and countervailing duty.
Cenvat credit for purchases by a DTA unit from an EOU must be computed under the formula in Rule 3(7) of the Cenvat Credit Rules, 2004, which adjusts the assessable value to account for basic customs duty and countervailing duty to determine admissible credit. (AI Summary)
Cenvat credit for purchases by a DTA unit from an EOU must be computed under the formula in Rule 3(7) of the Cenvat Credit Rules, 2004, which adjusts the assessable value to account for basic customs duty and countervailing duty to determine admissible credit. (AI Summary)