Sub-rule 1 of rule 9 allows credit on the basis of the following documents:
Nature of document Copy
1. Invoice issued by manufacturer from his factory, his depot, premises of his consignment agent, any other premises from where the goods are sold by or on his behalf under Rule 7 of Central Excise Rules, 2002.
(including for the goods removed as such under Rule 3)
Any copy
2. Invoice issued by an importer Any copy 3. Invoices issued by an importer from his depot,
premises of his consignment agent, if they are registered under Rule 9 of Central Excise Rules, 2002.
Any copy
4. Invoice issued by a first stage dealer or second stage dealer
Any copy
5. Bill of Entry Any copy
6. Supplementary invoice issued by manufacturer or importer or service provider, provided it is not paid in pursuance of demand invoking extended period under proviso to Section 11A. Challans or other similar documents evidencing the payment of additional duty of customs also eligible.
Any copy
7. Certificate issued by the appraiser of customs for imports through foreign post office.
Any copy
Nature of document Copy 8. Challan evidencing payment of service tax by the
service recipient as the person liable to pay service tax;
Any Copy
9. An invoice, a bill or challan issued by a provider of input service on or after the 10th day of, September, 2004
Any Copy
10. An invoice, bill or challan issued by an input service distributor under rule 4A of the Service Tax Rules, 1994.
Any Copy
11. A consignment note issued by Goods Transport Agency as defined under Explanation to Rule 4B of Service Tax Rules, 1994
Any Copy
Rule 9(2) provides that no CENVAT credit will be allowed to be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or Service Tax Rules, 1994 are mentioned in the documents specified in Rule 9(1). However, if the said document does not contain all the particulars but contains the following details, then Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise may allow the CENVAT Credit if he is satisfied that the goods or services covered by the said document have been received and accounted for in the books of the account of the receiver:
(a) duty or service tax payable,
(b) description of the goods or taxable service, (c) assessable value,
(d) Central Excise or Service Tax registration number of the person issuing the invoice,
(e) name and address of the factory or warehouse or premises of first or second stage dealers or provider of taxable service.
Records
(a) Record of inputs and capital goods
The manufacturer of final products/service provider is required to maintain proper records for the receipt, disposal, consumption and inventory of the
inputs/capital goods. The record should contain information regarding the following :
(i) Value of input/capital goods
(ii) Duty paid (specify types of duties, EC, SHEC etc.)
(iii) Person from whom inputs / capital goods have been procured.
(iv) Nature and description of goods.
(b) Record of input services
The manufacturer of final products / service provider/ ISD is required to maintain proper records for the receipt and consumption of the input services. The record should contain information regarding the following : (i) Value of service
(ii) Tax paid (specify ST, EC, SHEC etc.)
(iii) Person from whom input service has been procured (iv) Nature and description of services.
Rule 9(6) of the CENVAT Credit Rules, 2004 specifically prescribes the maintenance of records for receipt and consumption of services.
(c) CENVAT credit record
CENVAT credit record should be maintained on the lines of Personal Ledger Account (PLA). It is a current account of CENVAT credit received, credit utilized and credit balance. This should give details of the following :
(i) Credit availed against each input/capital goods (ii) Credit availed for input services
(iii) Credit utilized against the clearance of final products or removal of input as such or after processing or removal of capital goods as such (iv) Credit utilized against output service
(v) Balance credit available.
It is preferable if the details of the input credits, capital goods credits and input service credits are segregated in the CENVAT register so that each segment can be quantified and identified separately.
(d) Format of records
CENVAT Credit Rules, 2004, as such does not prescribe any format in which records are to be maintained by a manufacturer of final products/service provider.
Proforma/specimen of formats in which records may be maintained are given in the Annexures as under :
(i) CENVAT Stock Account (Inputs) Annexure 12.2 (ii) CENVAT Credit Account (Inputs) Annexure 12.3 (iii) CENVAT Stock Account (CG) Annexure 12.4 (iv) CENVAT Credit Account (CG) Annexure 12.5 (v) Record of CENVAT Credit Availed Service
Tax
Annexure 12.6
(vi) CENVAT Credit Account (Service Tax Summary)
Annexure 12.7
It needs to be expressly noted that, formats/specimen set out in the Annexures as above, are only illustrative in nature. The same would have to be suitably modified depending upon the activities/requirements of a manufacturer of final products/service provider and the reporting capabilities that have been developed and exist within the organization.
Generally, organizations which have adopted ERP software should not have difficulties in meeting the requirements as long as the required data is available and can be put in a reportable format.
Problems could arise where a manufacturer of final products/service provider uses more than one software package within the organization for transaction recording or the system is partially computerized. Unless and until there is a software which can satisfactorily meet the reporting requirements under Central Excise Act, 1944 or under service tax provisions, it would be better to maintain the records off line or manually especially in case of SMEs.
(e) Preservation of records
Though no specific mention is made under CENVAT Credit Rules, 2004, it would appear that records maintained for the purposes of CENVAT credit availment and the utilization should be preserved for a period of 5 years immediately after the financial year for which such record pertains.
In cases where there are disputes, it would be advisable to preserve records till the dispute is finally resolved.
(f) Onus for maintenance of records
Under CENVAT Credit Rules, 2004, the onus as to the maintenance of records is on the manufacturer of final products/service provider availing CENVAT credit. Hence, it is absolutely essential for the manufacturer of final products/service provider to ensure that appropriate records are maintained for CENVAT credit availed/utilized and should the need arise, enable him to reply to the central excise/service tax authorities in case of audit, enquires etc, satisfactorily.
Returns
Rule 9(7) provides that the manufacturer shall have to file returns on monthly basis. However, SSI units are required to file the returns on quarterly basis.
(a) Returns by a manufacturer of final products Form of return Description Who is required
to file
Form of return Description Who is required PLA or by utilizing CENVAT credit.
(b) Return by a first stage dealer / second stage dealer Form of Return Description Who is required
to file
(c) Return by a service provider
Form of Return Description Who is required to file
Form of Return Description Who is required to file
(e) E-filing of returns
For all the assessee (both manufacturers and service providers) it is mandatory to file the returns online.
CBEC has issued comprehensive Circular No. 919/091/2010 CX dated 23.3.2010 outlining the procedure for electronic filing of excise and service tax return and electronic payment of taxes under their project of Automation of Central Excise and Service Tax (ACES).