<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=539359806247306&ev=PageView&noscript=1"/>

It means Capital goods returned or sold without use (as it is)

 

When we purchase the capital goods, we take 50% cenvat.

In case we remove it as such, we take balance 50% cenvat also and then pay (reverse) the whole 100% cenvat

 

Hence it is said that in this case of capital goods, whole 100% cenvat is available in first year of purchase

 

 

This removal should be on cover of an invoice.

The buyer will be able to take credit of such amount

 

Exception:-

Service Provider can remove capital goods outside the factory for providing free warranty and need not pay cenvat

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
Didn't understand? Ask your question or doubt free.

Apna sawal puchiye!

Jail