Sale of fixed asset

This query is : Resolved

Amit Sheth (Querist)
Follow

16 October 2015 We have in our books few machinery which were bought in 2007-08 year and carries forward . we took excise registration on 01.04.2011 . now we wish to sell the assets... That is machinery which are bought in 2007 -08 financial year
Now have to to charge excise duty on that sale if fixed asset or just charge the vat
Please clarify

praveen

praveen (Expert)
Follow

16 October 2015 If you have claimed CENVAT credit when you had purchased the machinery then you have to charge excise duty now also.

The rate of excise duty will be reduced by 2.5% for every quarter from the date of purchase of the asset.

ajay taneja

ajay taneja (Expert)
Follow

16 October 2015 No need to charge excise duty on sale of machinery, as you got registration on 1/4/11. as the time of registration, you do claim cenvat on machinery, so you do not need to pay excise duty at the of sale of machinery.