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Have any records been prescribed under Cenvat Credit Rules to be maintained by service providers or manufactures? If no, what types of records are required to be maintained by a service provider or manufacturer of final products under Cenvat Credit Rules, 2004? Are separate books of accounts required?

Prasad G.

Cenvat Credit Rules, 2004 does not prescribe any set of books of accounts. However, Rule 9(5) states that the manufacturer of final products or the provider of output services shall maintain proper records for the receipt, disposal, consumption and inventory of the input and capital goods in which the relevant information regarding duty paid, Cenvat credit taken and utilised, and the person from whom the input or capital goods have been procured is recorded. Further, Rule 9(6) states that manufacturing of final products or the provider of output services shall maintain proper records for the receipt and consumption of the input services containing relevant information regarding the value, tax paid, and Cenvat credit taken and utilised.

It may be worth noting that the records should contain relevant information regarding the following: value of services; tax paid; Cenvat credit taken and utilised; person from whom input services has been procured.

The record maintained should provide the following information regarding Cenvat credit:

Credit utilised against each input/capital goods;

Credit utilised against payment of output services; and

Balance credit available.

The Cenvat Credit Rules demand certain information regarding inputs and input services, their consumption, and so on. It is up to the assessee to provide such information by maintaining relevant records. Maintenance of separate books of accounts is not a requirement under Cenvat rules.

Send in your queries to MentorAtYourService@gmail.com

http://MentorQA.blogspot.com

Sanjiv Agarwal

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