TaxTMI 
TaxTMI 
TaxTMI 
Below 10000 of Capital Goods treated as input
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....elow 10000 of Capital Goods treated as input<br> Query (Issue) Started By: - Swapneswar muduli Dated:- 27-3-2016 Last Reply Date:- 6-5-2016 Central Excise<br>Got 11 Replies<br>Central Excise<br>Dear Sir, According to 2016-budget cenvat credit Rule-2004 has been amended and according to that below amount of 10000 value of capital Goods we can take credit of 100% i.e as a input. My query is below ....
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....10000 value capital Goods Cenvat Credit we can take credit in our RG-23-A that is input credit Register ot RG-23-C that is Capital Goods Credit Register ? Regards Swapneswar Muduli Reply By KASTURI SETHI: The Reply: You may take credit in RG 23 C. Definition of capital goods has not been changed. The benefit is that you have not to take credit in piece meal. You r not to wait for another year ....
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....for taking whole credit Reply By Rajagopalan Ranganathan: The Reply: Sir, There no statutory records like R.G.23 A or R.G. 23 C. Your own private accounts will be accepted by the Department. You can take the credit in the same account but at different folio. Reply By KASTURI SETHI: The Reply: It is a matter of common knowledge that RG 23 C & A are not statutory records but the assesses are ma....
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....intaining the same for their convenience. Otherwise the essence of both replies is the same. Reply By Ganeshan Kalyani: The Reply: Sir, though the maintenance of RG-23 A & C is dispensed with, many Company is still maintaining the records in their accounting systems like SAP, QAD application etc. This gives them a lot of advantages during Excise Audit. Thanks. Reply By KASTURI SETHI: The Reply:....
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.... Sh.Ganeshan Kalyani Ji, Yes, Sir. In Chandigarh Zone, 90% manufacturers are maintaining these records with these columns either on computers or manually. These registers are still being sold as there is demand. Most of the assessees maintain Form-IV register which earlier prescribed for raw material. If any person maintains R.G.23 A Part.I, there is no need to maintain Form-IV. But Form-IV is ....
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....being maintained. Assessees like the columns of these registers very much for proper accountal. Reply By surya narayana: The Reply: Dear Swapneswar, As already stated there is no such mandatory requirement to maintain RG23-A and C seperately except to maintain a consolidated Cenvat Credit Account which is also not a statutory one. According to me majority of the assessees are only maintaining a....
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.... consolidated Cenvat Account except, few assessees who are still following the old procedure in some places. I suggest, in your case if, you are still following the old practice of maintaining RG 23-A and C, you can continue the same and there is no issue . As far as taking credit is concerned, I suggest you to take the same in RG23-A since, the Rule itself is clear that credit on capital goods ....
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....upto the Value of ₹ 10000/- per pice, credit can be taken considering that they are inputs. However, if , you have any concern , you may also take in RG23C. Best Regards Surya Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Swapneshwar, Can you please revisit your Query ......... You have mentioned "below ₹ 10,000/- value Capital Goods". Budget 2016-17 mentions of ͅ....
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....7; 10,000/- per piece as value of capital goods (for Input Tax Credit Treatment). Hope you would find difference in between two for sake of better clarity...... Reply By KASTURI SETHI: The Reply: Sh. CS SANJAY MALHOTRA Ji, Sir, This is not an isolated case. Reply By CS SANJAY MALHOTRA: The Reply: Respected Sh. Kasturi ji, Agreed. But incorrect use of phrases would have adverse impact too. ....
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....Mentioned below is random example, which all experts are aware of : For e.g. Bearings purchased 2 Nos costing ₹ 9,000/- each in terms of total Capital Godos cost works out to ₹ 18,000/-. but it should not be taken by querist as though the value of capital goods has increased ₹ 10,000/-, hence CENVAT credit will not be eligible to 100%, which is not the case. Value of CG in terms....
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.... of per pc has to be seen, which is ₹ 9000/- (less than ₹ 10,000/- per pc) hence CENVAT 100% is eligible. My submission is that we should make querist also understand to read the law better before placing the query.... Reply By Yatin Bhopi: The Reply: Dear all, I want further clarifiction on value of capital goods per piece. I have received one bill for pipes where unit of measher....
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....ment is per Meter and rate is fixed as a per meter. qty rate value 100 300/mtr 30000/- in this case whether I avail 100% in input or 50% in capital goods? Please let me know Reply By KASTURI SETHI: The Reply: 50% of Capital goods.<br> Discussion Forum - Knowledge Sharing ....