Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TDS :: list of goods taxed at 4% :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD
 
 
News Headlines »
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM
 Income tax (1st Amendment) Rules, 2017

New rule on cenvat credit
September, 13th 2007
Excise on destroyed finished goods

Bringing legal certainty to the issue of cenvat credit entitlement on the inputs used in the finished goods that get destroyed, the Finance Ministry has ruled that the cenvat credit taken on inputs need to be reversed in cases where excise duty on the finished goods are remitted on account of the latter goods getting destroyed by fire or other circumstances.

This implies that a manufacturer of finished goods would not be entitled to take cenvat credit on the inputs if the finished goods were to be destroyed and the excise duty on such goods were to be remitted by the excise department.

Duty remission by the excise department is required in situations where finished goods are destroyed due to fire or any other circumstances beyond the control of the manufacturer.

This is because a product becomes excisable on manufacture itself and payments are allowed to be made later as a facilitation measure.

Faced with conflicting pronouncements from various Tribunals on the matter of admissibility of cenvat credit, the Finance Ministry has now amended the Cenvat Credit Rules to insert a legal provision to stipulate that where remission is granted, cenvat credit has to be reversed.

Over the past decade, various Tribunals across the country had come up with different pronouncements on whether cenvat credit would need to be reversed or not in such situations.

There were pronouncements in favour of the assesses as well as the revenue department.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions