Conditions for Allowing Cenvat Credit - Cenvat Credit Rules, 2004

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1), credit to be taken immediately on receipt of inputs. It is not necessary to take credit as soon as inputs are received in the factory. However manufacturer or service provider should take credit at the earliest. However the manufacturer or the provider of output services shall not take CENVAT credit after one year of the date of issue of any of the documents specified in rule 9(1).&nbs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tricity for captive use within the factory or in the premises of the job worker, in case capital goods are sent directly to the job worker on the direction of the manufacturer or the provider of output service, as the case may be - Rule 4(2)(a) How much credit can be availed initially? In case of inputs = 100% In case of capital goods = upto 50% in the initial year. Balance, during any sub....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ownership of capital goods is necessary? No. See Rule 4(3) The Cenvat credit in respect of the capital goods shall be allowed to a manufacturer, provider of output service even if the capital goods are acquired by him on lease, hire purchase or loan agreement, from a financing company. Whether depreciation is allowed in respect of capital goods on Cenvat credit portion? No. See Rule ....