AS SUCH CLEARANCE U/S 3/4

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This query is : Resolved

debabrata roy (Querist)

06 June 2011 RESPECTED SIR,
IF WE CLEARING ANY CAPITAL GOODS AS SUCH, WHICH WAS RECEIVED AND INSTALLED ON DECEMBER'10 AND AS SUCH CLEARANCE ON JUNE'11 THEN WHAT IS THE PROCESS TO CALCULATE THE C.E.DUTY. WHICH AMOUNT OF DEPRECIATION TO BE CHARGED IF THE VALUE WAS 150000 BED-15000 EC-300 AND SHEC-150. (DEDUCTION OF DEPRECIATION IS MUST OR NOT)

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

08 June 2011 cenvat credit reatined could be 2.5% per quarter. Balance credit to be reversed.

CA RAJ KAPOOR SHARMA

CA RAJ KAPOOR SHARMA (Expert)

09 June 2011 Cenvat Credit Rules 2004

Rule 3(5)

Provided further that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-

(a) for computers and computer peripherals:

for each quarter in the first year @ 10%

for each quarter in the second year @ 8%

for each quarter in the third year @5%

for each quarter in the fourth and fifth year @1%

(b) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter.

(5A) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.

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