CENVAT on Capital Goods at 50% or 100%, Central Excise

[Udaya Chandran]

How much CENVAT credit can we take  on Capital goods, 50% or 100% in the first year. Please reply with notification/amendment?

Posts / Replies

[Pradeep Khatri]

You can avail the CENVAT credit on Capital goods to the extent of 50% of the excise duty amount.  But in case of imported capital goods, you may avail the 100% CENVAT credit of SAD Portion and 50% of the CVD portion.  This aspect has been mentioned in the CENVAT credit Rules, 2004 as amended time to time.