Kindly tell me the following things:
Which invoice to be used to sell capital goods.
Can the invoice no. be in line with normal sale.
How is excise calulated.
How is Vat calculated.
This regarding sale of old machinery.
Ajesh (Manager-Accounts) (34 Points)
14 March 2011Kindly tell me the following things:
Which invoice to be used to sell capital goods.
Can the invoice no. be in line with normal sale.
How is excise calulated.
How is Vat calculated.
This regarding sale of old machinery.
Divya K S
(CA)
(289 Points)
Replied 14 March 2011
Invoice is not required for sale of old machinery. A written document must suffice it. You can not issue a trading invoice for sale of old machinery.
Further you cannot charge Excice / VAT for the old machinery as it is not sale in the nature of trade. Sale of fixed asset cannot be regarded as trade sale. Its a special transaction & not a normal transaction.
Himal
(Executive)
(52 Points)
Replied 09 May 2011
Clearing of capital goods too requires payemnt of excise duty... if capital goods are sold as scrap then excise shall be calculated on Transaction value & if capital goods are sold after use then company has to reverse the duty @ 2.5% per quarter so if capital goods are sold after 10 years then no need to reverse the duty...... Also if the company hasnt paid excise duty during the time of purchase then no need to pay duty on sale of same...
further VAT shall be applicable on sale of such capital assets as per the rates prescribed in state wise vat act..
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 09 May 2011
| Originally posted by : Ajesh | ||
 |
- Normal invoice for home consumption ( Excise)+ Tax invoice( Vat) is to be used.
- Yes, mention specifically " for sale of capital goods"
- if cenvat credit is availed on capital goods then 2.5% per quarter in liner mode should be retained as depriciation.
- on transaction value, applicable rates, on basic value+ excise |
 |
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 25 June 2011
Instead of Invoice the details can be furnished in the Letter Head of the Company as a documentary evidence.
Arun Bhatnagar
(MAnager Finance & Accounts )
(25 Points)
Replied 16 January 2016
can any body tell us sample invoice of sale of capital asset on which we have availed cenvet of Rs 500000 and sold the machine at 1500000.after 4 years
Pls provide sample invoice in the above care
reply will well appreciated
Arun
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