Introduction of CENVAT credit rules across goods and services in the year 2004 was one of the major steps in indirect taxes reform process. Since then these rules have undergone significant changes as the Government has addressed issues and difficulties faced by tax payers and also taken steps to reduce cascading of taxes.

Union Budget 2016-17 has brought in plethora of changes in CENVAT Credit Rules, 2004. These cover expansion of definition of Exempted Services, Doing away with FIFO method for utilization of credit under Rule 14(2), allowing ISDs to distribute credit to outsourced manufacturing units, etc. A major change has taken place in process of reversal of credit wherein entire Rule 6 has been redrafted to make it unambiguous and practical. With these changes it can be gathered that the budget is much in line with the aim and vision of the Government to capitalize on the future with minimal changes in the legislation and maximum emphasis on the implementation.

We are pleased that Indirect Taxes Committee has thoroughly revised “Technical Guide to CENVAT Credit” with inclusion of changes made by Finance Act, 2016. We are sure that members will find this revised Guide immensely useful as new illustrations, case studies and recent judicial pronouncements have also been incorporated in the Guide to facilitate easy understanding of the provisions of CENVAT Credit Rules.

Direct Link Download ICAI Technical Guide to CENVAT Credit

http://idtc-icai.s3.amazonaws.com/download/CENVAT-27-08-2015.pdf

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