Accounts and Returns for availing Cenvat Credit - Cenvat Credit - Ready Reckoner [OLD] - Cenvat Credit

Chapter 13 Accounts and Returns for Availing Cenvat Credit Statutory Provisions: Rule 9(5) to 9(11) of the Cenvat Credit Rules, 2004 Accounts and Returns Rule 9(5) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt, disposal, consumption and inventory of the input and capital goods in which the relevant information regarding the value, duty paid, CENVAT credit taken and utilized, the person from whom the input or capital goods have been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit. Rule 9(6) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt and consumption of the input services in which the relevant information regarding the value, tax paid, CENVAT credit taken and utilized, the person from whom the input service has been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit. Rule 9(7) The manufacturer of final products shall submit within ten days from the close of each month to the Superintendent of Central Excise, a monthly return in the form specified, by notification, by the Board: Provided that where a manufacturer is availing exemption under a notification based on the value or quantity of clearances in a financial year, he shall file a quarterly return in the form specified, by notification, by the Board within ten days after the close of the quarter to which the return relates. Rule 9(8) A first stage dealer or a second stage dealer or a registered importer, as the case may be, shall submit within fifteen days from the close of each quarter of a year to the Superintendent of Central Excise, a return in the form specified, by notification, by the Board. Provided that the first stage dealer or second stage dealer or a registered importer, as the case may be, shall submit the said return electronically. Rule 9(9) The provider of output service availing CENVAT credit, shall submit a half yearly return in form specified, by notification, by the Board to the Superintendent of Central Excise, by the end of the month following the particular quarter or half year. Rule 9(10) The input service distributor, shall furnish a half yearly return in such form as may be specified, by notification, by the Board, giving the details of credit received and distributed during the said half year to the jurisdictional Superintendent of Central Excise, not later than the last day of the month following the half year period. Rule 9(11) The provider of output service, availing CENVAT credit referred to in sub-rule (9) or the input service distributor referred to in sub-rule (10), as the case may be, may submit a revised return to correct a mistake or omission within a period of sixty days from the date of submission of the return under sub-rule (9) or sub-rule (10), as the case may be. ==================================== It is commonly believed that no records or documents have been prescribed by the Cenvat credit for the purpose of availing Credit. But it is not correct. Yes, the statutory format under the Cenvat Credit has not been prescribed but the information and details that are required to be maintained have been prescribed by the Rule 9 of the Cenvat Credit Rules. The required information / documents required to be maintained is being discussed as under: Records for availing Cenvat Credit on Inputs/ Capital Goods - Rule 9(5) The manufacturer of final products or the provider of output service shall maintain proper records for inputs / capital goods containing the following information - - receipt - disposal - consumption - inventory - value - duty paid - CENVAT credit taken - CENVAT credit utilised - the person from whom the input or capital goods have been procured Further the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit. In the absence of any statutory format for maintaining the above information, the manufacturer or service provider can make its register / document containing all the above information / details. Old format of statutory registers are still in circulation and many assessee maintains such old registers, i.e. RG23A-Part I and Part II, RG 23C - Part I and Part II for inputs and capital goods respectively. Records for availing Cenvat Credit on Input Services - Rule 9(6) The manufacturer of final products or the provider of output service shall maintain proper records for availing Cenvat Credit on input services containing the following information - - receipt - consumption - value - tax paid - CENVAT credit taken - CENVAT credit utilized, - the person from whom the input service has been procured Further the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit. Return to be filed by a Manufacturer - Rule 9(7) The manufacturer of final products shall submit within ten days from the close of each month to the Superintendent of Central Excise, a monthly return in the form specified, by notification, by the Board. In case manufacturer is availing exemption under a notification based on the value or quantity of clearances in a financial year, he shall file a quarterly return in the form specified, by notification, by the Board within ten days after the close of the quarter to which the return relates. Due dates for SSI units - within 10 days after the close of the quarter Due dates for non SSI units - within 10 days from the close of each month. However, the form of Cenvat Credit Return is not independent and merged with the Central Excise Return ER-1 , ER-2 and ER-3. Return to be filed by a first / second stage dealer/ registered importer - Rule 9(8) A first stage dealer or a second stage dealer or a registered importer, as the case may be, shall submit within fifteen days from the close of each quarter of a year to the Superintendent of Central Excise, a return in the form specified, by notification, by the Board. The said return needs to file electronically. Form of quarterly return has been prescribed by the Board vide. Notification No. 11/2014 Central Excise (N.T.) dated 28 th Feb.2014, w.e.f. 1 st April, 2014. Return to be filed by the provider of output service provider - Rule 9(9) The provider of output service availing CENVAT credit, shall submit a half yearly return in form specified, by notification, by the Board to the Superintendent of Central Excise, by the end of the month following the particular quarter or half year. The form of half yearly return prescribed by the board is not independent and merged with the Service tax return ST-3 form. The due date for filing service tax in the ST-3 form is 25 th of the month following the particular half year, whereas the due date for filing the Cenvat Credit in ST-3 form is 30 th of the month following the end of the half Year. Therefore, since the due date prescribed under the different provisions are contradicting, the later date should prevail and return filed by the end of the following month should be treated as a valid return. Return to be filed by the input service distributor - Rule 9(10) The input service distributor, shall furnish a half yearly return in such form as may be specified, by notification, by the Board, giving the details of credit received and distributed during the said half year to the jurisdictional Superintendent of Central Excise, not later than the last day of the month following the half year period. The prescribed format is ST-3 . Revised Return under service tax- Rule 9(11) A provider of output service or a input service distributor, may submit a revised return. Such revised return can not be submitted beyond 60 days from the date of original return filed under rule 9(9) and 9(10) A belated return can not be revised. A revised return can not revised again. A return can be revised only to correct a mistake or omission. The prescribed format is ST-3 . Please note that Now Service Tax Return (ST-3 w.e.f. 01.10.2011) will be filed electronically by all assessee irrespective of their amount of Service Tax paid.