Asset transfer - cenvat credit rules - excisability.

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Dear Members,

Kindly clarify,

If the asset (Capital Good) which has been used for more than 10 years and having WDV value, transferring from Andhra Pradesh Plant to Karnataka plant;

how the rule 3(5A) of CENVAT credit rules applies to this transfer? whether am I require to pay excise duty? If yes under which provison? wat will be my transactional value, because I transferred the same at WDV Value.

Note : Company not registered under LTU provisions of the excise act.

Thank you

 

Replies (1)

cenvat credit is to be reversed at the rate of 2.5 %( of the cenvat credit availd.) per quarter.After 10 years use the reversal will be nil. But if you are sellingthe same you have to pay duty on the sale/transction value.value.


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