Caliming of cenvat with a view of provisons of Rule 4(4) , Service Tax

[Tilak Minocha]

please clarify the provisions of Rule 4(4) of Cenvat Credit Rule, 2004 w.r.t. the following example: Cost of Asset=100 (basic) Excise on above=16 Cenvat Claim in first year=50% of 16=8 Depreciation claimed in first year=100*15%=15 How much Cenvat can be claimed in the first year and second year keeping in view the provisons of Rule 4(4)

Posts / Replies

[Surender Gupta]

In the query it is clear that you have not availed any depreciation on the portion of Cenvat Credit, therefore, you are eligible to claim cenvat credit of Rs. 8 the first year adn balance of Rs. 8 in the subsequent year.