« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  Review of India-Canada Tax Treaty sought... Tax & the resident... » Tax to be paid if CGs sold after taking cenvat credit November, 16th 2007 Manufacturers and service providers will now be liable to pay duty if capital goods (CGs) 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 the 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 date of claiming credit as mentioned in the amendment as most of the times there could be a time gap between the date of receipt of capital goods and date of claiming credit, 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. Credit can be availed against duty paid on capital goods used by manufacturers of final products. Giving credit against duty paid arrests the cascading effect of tax on tax or duty on duty at every stage of manufacture. Up till now, there was no statutory provision dealing with the situation when used capital goods were removed by manufacturers and service providers on which they would have availed cenvat credit at the time of receipt of such capital goods. Based on the letter of the law, certain assessees took a plea and also succeeded in litigation with the revenue authorities to sustain their argument that in the absence of a specific provision in the law to deal with a situation where used capital goods are removed, there is no obligation on the assessee to pay any tax or reverse any cenvat credit on such removal by them. This resulted in loss of substantial revenues for the government.