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TMI BlogRemoval of capital goods - reversal of cenvatX X X X Extracts X X X X X X X X Extracts X X X X ..... where service provider calims cenvat credit on capital goodsand thereafter sells them after period of 4 years is he required to reverse any cenavt credit how can service provider remove capital goods as per provisions of act since service provider cannot raise any invoice for capital goods - Reply By Rama Krishana - The Reply = Please refer to rule 3(5) of the cenvat credit rules, 1994 which read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as: "Provided also that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit." Therefore, service provider has to raise an inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oce for removal of capital goods. I think an invoice which is used for the purpose of provision of services would be sufficient to show the details of removal of capital goods and reversal of credit thereon. On the other side, you need to ascertain the provisions of VAT also. If you require to pay VAT, indeed, you need to prepare a commercial invoice. And I think it would solve the purpose. - Remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val of capital goods - reversal of cenvat - Query Started By: - madhavvan Dated:- 29-4-2009 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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