Cenvat Credit Rules, 2004 – Ntf. 18/2012 CE(NT)
(w.e.f. 17-3-2012 or w.e.f. 1-4-2012)
(Cenvat Credit Rules, 2004 as amended available on www.taxmanagementindia.com)
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Sr. No.
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Particulars
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Old Provisions
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New Provisions
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Effective Date
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1
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Credit on Motor Vehicles under the head capital goods – Rule 2(a)
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No cenvat credit on motor vehicle to manufacture
Only specified services providers were allowed to avail credit of motor vehicles
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Cenvat Credit allowed in respect of motor vehicles (other than falling under 8702, 8703, 8704, 8711) allowed to all.
Cenvat Credit allowed in respect of motor vehicles (falling under 8702, 8703, 8704, 8711) allowed to specific service providers
8702 = MOTOR VEHICLES FOR THE TRANSPORT OF TEN OR MORE PERSONS,
8703 = MOTOR CARS AND OTHER MOTOR VEHICLES PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS
8704 = MOTOR VEHICLES FOR THE TRANSPORT OF GOODS
8711 = MOTORCYCLES (INCLUDING MOPEDS) AND CYCLES FITTED WITH AN AUXILIARY MOTOR, WITH OR WITHOUT SIDE- CARS;
Cenvat Credit also allowed on parts and accessories allowed in respect of motor vehicles (above)
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1-4-2012
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2
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Credit of service tax paid in respect of motor vehicles – Rule 2(l)
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Restricted and allowed onto to specified services providers
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ST paid on renting of hiring of eligible motor vehicles allowed to all.
ST paid on General Insurance and Repair and Maintenance allowed to:
- manufacturer of a motor vehicle
- insurance companies in respect of insurance or re-insurance
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1-4-2012
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3
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Payment of amount / duty on removal of Capital goods after being used or as waste / scrap – Rule 3(5A)
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in case the capital goods on which Cenvat credit has been taken are cleared after being used then the amount payable shall be either the amount calculated on the basis of Cenvat credit taken at the time of receipt reduced by a prescribed percentage
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in case the capital goods on which Cenvat credit has been taken are cleared after being used then the amount payable shall be either the amount calculated on the basis of Cenvat credit taken at the time of receipt reduced by a prescribed percentage or the duty on transaction value whichever is higher.
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17-3-2012
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4
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Receipt of inputs and capital goods outside the premises by service provider – 4(1)
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Presently credit on goods can be taken only after they are brought to the premises of the service provider.
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Sub-rules 4(1) and 4(2) have been amended to allow credit without bringing them into premises subject to due documentation regarding their delivery and location.
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1-4-2012
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5
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Refund of unutilized cenvat credit in case of Export – Rule 5
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Input out correlation were required to be made
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The new scheme does not require the kind of correlation that is needed at present between exports and input services used in such exports. Duties or taxes paid on any goods or services that qualify as inputs or input services will be entitled to be refunded in the ratio of the export turnover to total turnover.
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1-4-2012
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6
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Engaged in taxable as non taxable activity – Rule 6
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5% of Exempted services
5% of Exempted goods
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6% of exempted services
6% of exempted goods
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1-4-2012
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7
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Cenvat Credit on Life insurance services – Rule 6(3C)
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Required to pain an amount equal to twenty per cent. of the CENVAT credit availed on inputs and input services in that month
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Such restriction removed – full cenvat credit restored
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1-4-2012
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8
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Input Service Distributor – Rule 7
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No restriction on distribution of credit to any.
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Scientific allocation to only such units where they have been put to use and proportionate to turnover.
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1-4-2012
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9
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Challan for availing cenvat credit – Rule 9
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Cenvat Credit on the basis of challan was allowable only to specified services in case of reverse charge
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Credit is allowed on the basis of Challan to all who are paying service tax as recipient of services
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1-4-2012
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10
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Transfer of SAD – Rule 10A
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Not existing
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To permit transfer of unutilized credit of SAD lying in balance at the end of each quarter to another factory of the manufacturer
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1-4-2012
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11
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Option to large taxpayer – Rule 12A
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Facility of Rule 12A is not available where excise duty is paid 2% (earlier 1% under notification no. 1/2011 CE)
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1-4-2012
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12
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Interest on wrong cenvat credit – Rule 14
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Interest was payable on cenvat credit taken or utilised wrongly
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Interest was payable on cenvat credit taken and utilised wrongly
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17-3-2012
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