Provisions for availing cenvat credit on purchase of machinery

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....rovisions for availing cenvat credit on purchase of machinery<br> Query (Issue) Started By: - Razesh Dated:- 21-6-2006 Last Reply Date:- 28-6-2006 Central Excise<br>Got 3 Replies<br>Central Excise<br>Under Central Excise laws,what are the provisions for availing cenvat credit with regard to the purchase of machinery,i.e. at what time we can avail the cenvat credit,i.e.,the time when machinery came....

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.... to our site or when it will be installed and will be used for the production and if it can be availed at the time when it will be installed and we start using it for production,whether there is any need to intimate excise authorities about its installation. Reply By Surender Gupta: The Reply: For availing Cenvat Credit on the Capital Goods, it is sufficent that you have received such capital goo....

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....ds in your factory premises. You can avail the Credit even before installation of such plant and machinery. Cenvat Credit is available in two installments i.e. 50% in the first year and 50% in the subsequent years. There is no need to intimate central excise authorities separately. Reply By Madhukar N Hiregange: The Reply: Cenvat Credit Rules 2004 in rule 3 provide for the availment and utilisati....

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....on of credit. As far as capital goods are concerned, credit is available upto 50% in year of receipt and balance in any subsequent years. There is no intimation required under law. Reply By Sunil Chowdhary: The Reply: You need the invoice on which CENVAT is paid. You can claim credit of maximum 50% of CENVAT in the first year and the balance in subsequent year(s). HOWEVER, YOU CANNOT CLAIM DEPREC....

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....IATION IN INCOMETAX if you avail CENVAT credit on machine.<br> Discussion Forum - Knowledge Sharing ....