« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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.