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SCOPE OF CAPITAL GOODS FOR CENVAT CREDIT
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....COPE OF CAPITAL GOODS FOR CENVAT CREDIT<br>By: - Dr. Sanjiv Agarwal <br>Service Tax<br>Dated:- 17-10-2012<br><br>Scope and meaning of capital goods Capital goods as per Rule 2(a) of CENVAT Credit Rules 2004, means: A. The following goods - * All goods falling under chapters 82, 84, 85, 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the First Sch....
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....edule to Central Excise Tariff Act * Pollution control equipment * Components, spares and accessories of the goods specified at clauses (1) and (2) above * Moulds and dies, jigs and fixtures * Refractories and refractory materials * Tubes and pipes and fittings thereof; and * Storage tank and 1. Motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and t....
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....heir chassis), but including dumpers and tippers, used- (1) in the factory of the manufacturer of the final products, but doen not include any equipment or appliance used in an office; or (1A) Outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or (2) for providing output service, B. Motor Vehicles des....
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....igned for transportation of goods including their chassis, registered in the name of the service provider, is considered as capital goods w.e.f. 1st July, 2012, if used for: * Providing an output service of renting of such motor vehicle or * Transportation of inputs and capital goods used for providing an output service or * Providing an output service of courier agency * Motor Vehicles de....
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....signed to carry passengers including their chassis, registered in the name of the service provider, is considered as capital goods w.e.f. 1st July, 2012 if used for providing an output service of transportation of passengers, renting of such motor vehicle, imparting motor driving skills 2. Definition of "capital goods" has been amended whereby credit of duty paid on....
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.... components, spares & accessories of motor vehicles which are capital goods for the assessee is available as CENVAT Credit. Hitherto, the CENVAT Credit of duty paid on those goods was available only to specified service providers. The aforesaid items should be used for providing output service as defined in rule 2(p) of Cenvat Credit Rules or used in manufacture of final products. taxtmi.co....
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....m The definition of capital goods has been expanded w.e.f. 1.4.2012 / 1.7.2012 to cover motor vehicles other than the following by inserting a new item no. (viii) Under Rule 2(a)(A). * Motor vehicles for the transport of ten or more persons including the driver as specified under tariff heading 8702. * Motor cars and other motor vehicles principally designed for the transport of persons(other....
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.... than those of tariff item 8702) including station wagons and racing cars other than those as specified under tariff heading 8703. * Motor vehicles for the transport of goods as specified under tariff heading 8704. It includes three-wheeled motor vehicle, dumper, lorry, truck etc. * Motorcycles (including mopeds) and cycles fitted with an auxiliary motor with or without side cars as specified ....
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....under tariff heading 8711. The credit of service tax paid on their hiring would be allowed only in relation to motor vehicle which is capital good. The credit for service tax paid on general insurance and repair would be allowed to a manufacturer of motor vehicle in respect of motor vehicle manufactured by such person or an insurance company in respect of motor vehicle insured or reinsured. = = ....
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