« Top Headlines » Open DEMAT Account in 24 hrs  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately  Income tax returns: ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing  Section 80DDB tax benefits for specified illnesses: 5 things to know  Income tax slabs FY 2024-25: Five tips to help taxpayers decide between old and new income tax regimes  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 (AY 2024-25) available now on e-filing income tax portal «  Overseas cos off-mkt deals in 10% tax net... FM to study exporter demands on cheaper credit, DEPB... » Centre finetunes Cenvat rules for manufacturing, service cos November, 16th 2007 Manufacturers and service providers will now be liable to pay duty if capital goods, on which Cenvat credit has been taken, are removed after their use. This follows an amendment carried out by the government in the Cenvat Credit Rules, 2004. However, they would be allowed to claim a depreciation at the rate of 2.5% for each quarter of a year or part thereof from the date of taking the Cenvat credit. 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% for each quarter of a year or part thereof from the date of taking the Cenvat credit, the notification said. Experts say this has been mainly done to plug the loophole which existed in the Cenvat credit rules. This was an expected amendment and is in line with Cenvat Credit Rules as it existed prior to the present set of rules. However, the period of claiming deduction should be reckoned from the date of receipt of capital goods instead of the date of claiming credit as mentioned in the amendment as there could be a time gap between the date of receipt of capital goods and date of claiming credit most of the times, says PricewaterhouseCoopers executive director Prasad Paranjape. For every rupee of Cenvat paid by the industry on inputs, it earns a credit that can be used against setting off its liability. The credit can be availed of against duty paid on capital goods used by manufacturers of final products. Till now, there was no statutory provision dealing with the situation when used capital goods were removed by manufacturers on which they would have availed of Cenvat credit at the time of receipt of such capital goods.