Any special provisions relating to credit on capital goods?
Yes. While availing credit on capital goods, the manufacturer shall not avail the depreciation on that part which represents the Cenvat credit. If the value of goods is Rs 1,00,000 and duty paid at 16% is Rs 16,000, the manufacturer shall claim depreciation only on base value of Rs 1,00,000. If depreciation is claimed on the full value, of Rs 1,16,000/-, no cenvat credit is allowed.
