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TMI BlogBelow 10000 of Capital Goods treated as inputX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, According to 2016-budget cenvat credit Rule-2004 has been amended and according to that below amount of 10000 value of capital Goods we can take credit of 100% i.e as a input. My query is below 10000 value capital Goods Cenvat Credit we can take credit in our RG-23-A that is input credit Register ot RG-23-C that is Capital Goods Credit Register ? Regards Swapneswar Muduli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = You may take credit in RG 23 C. Definition of capital goods has not been changed. The benefit is that you have not to take credit in piece meal. You r not to wait for another year for taking whole credit - Reply By Rajagopalan Ranganathan - The Reply = Sir, There no statutory records like R.G.23 A or R.G. 23 C. Your own private accounts will be acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted by the Department. You can take the credit in the same account but at different folio. - Reply By KASTURI SETHI - The Reply = It is a matter of common knowledge that RG 23 C A are not statutory records but the assesses are maintaining the same for their convenience. Otherwise the essence of both replies is the same. - Reply By Ganeshan Kalyani - The Reply = Sir, though the maintenanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of RG-23 A C is dispensed with, many Company is still maintaining the records in their accounting systems like SAP, QAD application etc. This gives them a lot of advantages during Excise Audit. Thanks. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, Yes, Sir. In Chandigarh Zone, 90% manufacturers are maintaining these records with these columns either on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computers or manually. These registers are still being sold as there is demand. Most of the assessees maintain Form-IV register which earlier prescribed for raw material. If any person maintains R.G.23 A Part.I, there is no need to maintain Form-IV. But Form-IV is being maintained. Assessees like the columns of these registers very much for proper accountal. - Reply By surya narayana - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Dear Swapneswar, As already stated there is no such mandatory requirement to maintain RG23-A and C seperately except to maintain a consolidated Cenvat Credit Account which is also not a statutory one. According to me majority of the assessees are only maintaining a consolidated Cenvat Account except, few assessees who are still following the old procedure in some places. I suggest, in your ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se if, you are still following the old practice of maintaining RG 23-A and C, you can continue the same and there is no issue . As far as taking credit is concerned, I suggest you to take the same in RG23-A since, the Rule itself is clear that credit on capital goods upto the Value of ₹ 10000/- per pice, credit can be taken considering that they are inputs. However, if , you have any concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n , you may also take in RG23C. Best Regards Surya - Reply By CS SANJAY MALHOTRA - The Reply = Dear Mr. Swapneshwar, Can you please revisit your Query ......... You have mentioned below ₹ 10,000/- value Capital Goods . Budget 2016-17 mentions of ₹ 10,000/- per piece as value of capital goods (for Input Tax Credit Treatment). Hope you would find difference in between tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o for sake of better clarity...... - Reply By KASTURI SETHI - The Reply = Sh. CS SANJAY MALHOTRA Ji, Sir, This is not an isolated case. - Reply By CS SANJAY MALHOTRA - The Reply = Respected Sh. Kasturi ji, Agreed. But incorrect use of phrases would have adverse impact too. Mentioned below is random example, which all experts are aware of : For e.g. Bearings purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased 2 Nos costing ₹ 9,000/- each in terms of total Capital Godos cost works out to ₹ 18,000/-. but it should not be taken by querist as though the value of capital goods has increased ₹ 10,000/-, hence CENVAT credit will not be eligible to 100%, which is not the case. Value of CG in terms of per pc has to be seen, which is ₹ 9000/- (less than ₹ 10,000/- per pc) hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT 100% is eligible. My submission is that we should make querist also understand to read the law better before placing the query.... - Reply By Yatin Bhopi - The Reply = Dear all, I want further clarifiction on value of capital goods per piece. I have received one bill for pipes where unit of measherment is per Meter and rate is fixed as a per meter. qty rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value 100 300/mtr 30000/- in this case whether I avail 100% in input or 50% in capital goods? Please let me know - Reply By KASTURI SETHI - The Reply = 50% of Capital goods. - Below 10000 of Capital Goods treated as input - Query Started By: - Swapneswar muduli Dated:- 27-3-2016 Central Excise - Got 11 Replies - Central Excise - Discussion Forum - Knowledge Sharing, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... 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