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Cenvat for textile units streamlined
08 Feb '07
1 min read
Government has asked textile units to take credit for inputs at the end of the month only for the purpose of streamlining use of Cenvat (Central Value Added Tax) credit by textile sector.
Textile manufacturers use common inputs that are utilized continuously, such as dyes and chemicals, which make segregation of inputs separately or maintaining of separate accounts impossible, the Central Board of Excise and Customs said in a notification.
Two options are available under excise for textile manufacturers. They can either have exemption or they can go for Cenvat credit.
To avail benefit of both windows simultaneously, manufacturers have been advised to refrain from taking credit initially and instead take proportionate input credit on inputs utilized and its duty paid for manufacture of those goods. Such credits may be taken by month end only.
Assessee will require to support such credit availment with relevant records, showing quantity of input used and its duty paid for manufacturing the goods, whenever the department may require.
Textile manufacturers use common inputs that are utilized continuously, such as dyes and chemicals, which make segregation of inputs separately or maintaining of separate accounts impossible, the Central Board of Excise and Customs said in a notification.
Two options are available under excise for textile manufacturers. They can either have exemption or they can go for Cenvat credit.
To avail benefit of both windows simultaneously, manufacturers have been advised to refrain from taking credit initially and instead take proportionate input credit on inputs utilized and its duty paid for manufacture of those goods. Such credits may be taken by month end only.
Assessee will require to support such credit availment with relevant records, showing quantity of input used and its duty paid for manufacturing the goods, whenever the department may require.
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