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Former Member
Apr 22, 2010 at 06:28 AM

cenvat credit on capital goods.

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Dear all,

1. There is a rule that the cenvat credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared from the factory as such in the same financial year.

2.The system is designed in such a way that the cenvat credit in respect of capital goods received in a factory or in the premises of the duty paid of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year.

Please suggest us how to configure the system for the point no :1

Thanks & Regards,

A.Anandarajan.