ICAI’s “Technical Guide to CENVAT Credit 2016” with inclusion of changes made by Finance Act, 2016
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.
Accordingly, the Indirect Taxes Committee of ICAI has thoroughly revised “Technical Guide to CENVAT Credit 2016” with inclusion of changes made by Finance Act, 2016. This revised Guide is 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 amended CENVAT Credit Rules.