« Top Headlines » Open DEMAT Account in 24 hrs  ITR filing deadline extension now demanded by this Tax Bar Association due to many issues including technical glitches with ITR portal  GST Rule Changes for FY 2025 26  Income tax return filing 2025: Five ITR mistakes that can trigger an income tax notice in 2025  ITR filing What is updated income tax return and ITR U Who can file & what you can t change - top points to know  Shifted to new tax regime? Here are 5 investments you shouldn't drop  Auditing and Assurance Standards Board Expert Panel for addressing queries related to Statutory Audit pertaining to auditing aspects. «  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.