Modvat credit on leased capital goods: conditions require specific documentation and bar depreciation on duty component. Modvat credit for capital goods acquired on lease, hire-purchase or loan is allowed only if the manufacturer files the rule 57T declaration, produces invoices or agreements evidencing payment of the specified duty and the financing arrangement, or a financier's certificate that the manufacturer paid the duty before the first instalment when financing includes the duty; the duty must represent the whole duty payable, Chapter V procedure must be followed, documents must name both manufacturer and financier, and no income-tax depreciation may be claimed on the duty component.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Modvat credit on leased capital goods: conditions require specific documentation and bar depreciation on duty component.
Modvat credit for capital goods acquired on lease, hire-purchase or loan is allowed only if the manufacturer files the rule 57T declaration, produces invoices or agreements evidencing payment of the specified duty and the financing arrangement, or a financier's certificate that the manufacturer paid the duty before the first instalment when financing includes the duty; the duty must represent the whole duty payable, Chapter V procedure must be followed, documents must name both manufacturer and financier, and no income-tax depreciation may be claimed on the duty component.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
