It is a very important confusion to be clarified relating to the Cenvat credit Rule 2(I) (a) "which mentions that any manufacturer who manufactures excise-able goods if avails any credit on Input services for setting-up of a factory or a factory premises directly or indirectly, relation or in relation to manufacture of goods and the service amount of which the service tax paid is not added in the cost of production / manufacturing, but being considered as a valuating the Asset value of the establishment as to be recorded in the balance sheet, can avail Cenvat credit as per the confusion aroused & cleared regarding "omit-ion of word "Setting-Up" from the definition w.e.f. 01/04/2011" resulting to "remaining of previous definition".
My question is what impact does it throws in the GST era.......................?
Please clarify me in details..............................
Under GST input credit is not available on construction of any moveable property. Except only if immovable property is a plant and machinery.
GST is simple and straight forward. You avail input on every expense, except capex unless it is on plant and machinery.
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