CENVAT CREDIT Basic Features Concept of Cenvat credit
CENVAT CREDIT
Basic Features Ø Concept of Cenvat credit. Ø Landmarks – 1986, 1994 & 2004. Ø Cenvat Credit Rules, 2004.
Applicability Ø Manufacturers. Ø Service providers.
Certain terms. Ø Input. Ø Capital goods. Ø Input Service Distributor. Ø First / Second stage dealer.
Cenvattable duties / taxes Ø Basic Excise Duty. Ø CVD. Ø NCCD. Ø Education CESS. Ø Addl. Duty of Customs – Sec. 3(5). Ø Service Tax and CESS thereon.
Utilisation and Restrictions on utilisation Ø Payment of Excise duty. Ø Payment of Service tax. Ø Other payments. Ø Cross utilisation.
Other conditions. Ø Capital goods – 50 % restriction. Ø No to “having the cake and eating it too - Depreciation / Cenvat Credit. Ø Removal of inputs / capital goods - the story “as such”.
Other conditions. Ø Removal for job work. Ø Write off. Ø Service Tax Credit - Pay and use. Ø Documents for availing credit.
Rule 6 Algebra. Ø Position upto 31. 03. 2008. Ø Position from 01. 04. 2008.
Rule 6. Ø Protection to certain clearances. Ø Protected Services. Ø Chandrapur Magnet Wires (P) Ltd Vs CCE. 1996 (81) ELT 3 SC - Recent developments.
Certain common disputes… Ø Credit for mobile phone. India Rayon Industries Ltd. Vs CCE 2006 (4) STR 79. Ø Credit for outdoor catering. Victor Gaskets India Ltd Vs CCE 2008 – TIOL – 409.
Certain common disputes… Ø Credit for outward transportation. - Gujarat Ambuja Cements Ltd. Vs CCE. 2007 (6) STR 249. - India Cements Limited Vs CCE 2007 (8) STR 43. - Master Circular and recent amendments.
THANKS
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