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6/2/2017#0183;#32;As per Section 16 of CGST Act, 2017 and as per GST Input Tax Credit Final Rules there is no restriction in availing input tax credit in respect of cement and steel. However we have to await further Notification or instructions from the Department.. As of now there is no restriction.
#0183;#32;But here it is important to note that as per Proviso to Rule 3(1) of Cenvat Credit Rules,2004 the credit of additional/special custom duty(CVD) as paid under Sec 3(5) of CTA,1975 cannot be claimed by a service provider to pay output ST or manufacturer can claim the same to pay output excise.
Cenvat Credit Rules 2004 at the same time specifically provides for denial of credit of tax paid on certain specified inputs, input services and capital goods. The restrictions lead to break in the credit chain and consequent cascading effect leading to sticking of taxes on goods and services even when the same are exported.
Cenvat Credit Rules. Rule 1. Short title, extent, and commencement. (1) These rules may be called the CENVAT Credit (Amendment) Rules, 2010. (2) They shall come into force on the date of their publication in the Official Gazette. Rule 2. Definitions. In these rules, unless the context otherwise requires,(a) capital goods means:
Query gt; we have received solvent cement from others, solvent cement used for laying and Jointing, we are not sold to Customers, we supplied free of cost for Jointing the Pipes, can we take Cenvat credit on Solvent cement .? Please sujjest me, Thanking you,, Sudhakar Pipes, Suryapet. Posts / Replies. Showing Replies 1 to 3 of 3 Records
Reversal of Excise Duty on Burst Bags: As per Rule 3 (5) of cenvat credit Rules 2004, company has to reverse the cenvat credit which is utilized as input credit on Burst bags. Whether Major and Transport contracts and payments thereof have been checked Some valid audit observations (exemplary) which are in line with recent tax law changes and
3/9/2012#0183;#32;Query gt; we have received solvent cement from others, solvent cement used for laying and Jointing, we are not sold to Customers, we supplied free of cost for Jointing the Pipes, can we take Cenvat credit on Solvent cement .? Please sujjest me, Thanking you,, Sudhakar Pipes, Suryapet. Posts / Replies. Showing Replies 1 to 3 of 3 Records
CENVAT Credit on input Services 2014 The term place of removal has not been defined in CENVAT Credit Rules but is defined in Section 4 (3)(c ) of central excise act as follows : Place of removal means i) A factory or any other place or premises of production or manufacture of the excisable goods.
Credit not admissible based on value addition when items not used in manufacture Cement and steel items used for laying foundation and building structural support contended as contributing to value of final products and credit admissible Excise duty not in the nature of value added tax, Credit not allowed as per statute with reference to value addition :Supreme Court in Maruti Suzuki
As per Rule 2(l) of Cenvat Credit Rules, 2004, which defines the term input services, Cenvat Credit may be claimed with respect to service tax paid on transportation used for clearance of final products upto 2. However, the term place of removal is not defined under the Cenvat Credit Rules
20/11/2012#0183;#32;Credit not admissible based on value addition when items not used in manufacture Cement and steel items used for laying foundation and building structural support contended as contributing to value of final products and credit admissible Excise duty not in the nature of value added tax, Credit not allowed as per statute with reference to value addition :Supreme Court in Maruti
The assessee is also availing the benefit of Cenvat Credit facility under the Cenvat Credit Rules, 2004 (Rules, 2004 for short). The assessee herein gets finished goods (cement) from its parent unit on stock transfer basis and sells the same in bulk form and packed bags.
Reported in : [2006(4)JCR195(Jhr)]..... value added tax (cenvat) credit scheme. old modvat rules 57a to 57b were replaced with new rules. until 30th june, 2001, modvat and cenvat rules were part of the erstwhile central excise rules, 1944. on 21st june, 2001, a separate rule, as per cenvat credit scheme, was notified by the central government, known as cenvat credit rules, 2001, which was
Further, we find that input service as defined under Rule 2(l) of CENVAT Credit Rules, 2004 explicitly includes activity of sales promotion and the explanation to Rule 2(l) of CENVAT Credit Rules, 2004 inserted by Notification /2016CE(NT) dated holding that sales promotion includes services by way of sale of dutiable goods on commission basis. We also find that this
10/9/2004#0183;#32;(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. (4) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer or provider of output service claims as depreciation
#0183;#32;CENVAT credit cannot be claimed for the payment of excise duty for which benefit of exemption is availed. Output service service tax. Amount under rule 16 (2) of Central Excise Rules 2002. Amount equal to CENVAT credit taken on capital goods, if such goods are removed.
(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. (4) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer or provider of output service claims as depreciation
Rule 2(a) of CENVAT Credit Rules, 2004 defines the term capital goods as (A) the following goods, namely: (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 and wagons of subheading 860692 of the First Schedule to the Excise Tariff Act;
CENVAT credit is available for input service up to place of removal. The concept of removal is borrowed from central excise and hence applies to only manufacturer and not service provider. The term place of removal has not been defined in CENVAT Credit Rules but is defined in Section 4 (3)(c ) of central excise act as follows :
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