Dear profetional friend ,
We understand that your query is that an service provider want to
take credit on capital goods imported. The credit of Capital goods is
allowed to Service provider under Cenvat Credit Rules.
The defination of "capital goods" is given under Rule 2(a) of Cenvat
Credit Rules which reads as follows:-.
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85,
Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the
First Schedule to the Tariff Act;
(ii) components, spares and accessories of the goods specified at (i)
(iii) moulds and dies;
(iv) refractories and refractory materials;
(v) tubes and pipes and fittings thereof;
(vi) pollution control equipment; and
(vii) storage tank,
used in the factory of the manufacturer of the final products, but
does not include any equipment or appliance used in an office.
Please check whether the goods imported falls under the defination of
capital goods. If yes, then the credit of CVD, ED. CESS on CVD ,SHE
on CVD and SAD can be availed .No credit of Basic custom duty, Custom
Education Cess and Custom SHE will be available. It will be allowed
@50% iin this year and 50% in next financial year.
CA Pradeep Jain
-- In ICAI_CIRC_MEERUT_
> Dear All,
> i want to confirm, whether CENVAT credit in service
> Tax can also be availed on the capital goods imported
> by paying custom duty by the assessee himself.
> what is the rate at which the credit is available.
> please give an early reply.
> thanks in advance
> CA Gaurav Jain
> Never miss a thing. Make Yahoo your home page.
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