New Cenvat Rules 1. The existing Cenvat Credit Rules, 2004 have been amended in many respects. Some amendments are effective 01.04.2011 and some amendments are effective 01.03.2011 itself. 2. Under the existing Rules under Rule 6(5), 17 categories of services are listed where there is no requirement of reversal of credit for clearance of exempted goods. The list of these services are enclosed. 3. In the amended Rules, Sub-rule 6(5) is omitted and this omission is effective from 01.04.2011. 5. In view of the above, you may avail the credit for the pending bills at the earliest. If you are not taking the credit for the pending bills in this month itself, please note that any credit availment post 1-4-2011 will warrant prorate reversal of credit for these 17 services. Please avoid bunching of documents on last day for the obvious reason that this is also going to be 31st March ending and all compliances are required to be completed on or before March 31, 2011 itself and no facility of due date in the subsequent month will be available. 6. 1. Effective 01.04.2011 Cenvat Credit Rules, 2004 have been amended where the following services have made ineligible for availing credit : a) Outdoor catering b) Beauty treatment c) Health services d) Cosmetic and Plastic Surgery e) Membership of a club f) Health & Fitness Centre g) Life Insurance h) Health Insurance i) Travel benefits extended to employees on leave When such services are used primarily for personal use or consumption of any employee. 2. As the amendment is effective 01.04.2011, under the old Rules which are valid upto 31.03.2011 you are eligible for credit on most of the above services as per the principles laid down periodically in this respect. 3. In view of the above, it will be advisable that bills for the month of March are also paid and distributed preferably in March itself so that credit to the extent eligible for March is availed. 4. Similarly following services are also made ineligible so far as they are used for construction of building or civil construction or part thereof or laying of foundation or making of structure for support of capital goods with effect from 01.04.2011 : a) Architect services b) Commercial or industrial construction services c) Works contract services 5. In view of the above, all pending invoices pertaining to the above services will also need to be accounted in March itself for availment of credit in March itself.
