Cenvat credit

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This query is : Resolved

P.A. FRANCIS (Querist)

19 February 2012 4 years back i have purchased capital goods taken credit of 16% Cenvat duty, now i want to resale to some others. At present Excise duty is 10%, so now what % of duty to be charged to my customer

CA. Rajesh P. Ahir

CA. Rajesh P. Ahir (Expert)

19 February 2012 it will be 16%.

or you can sell it as scrap and pay duty accordingly (applicable to scrap).

CMA Loganathan Sekar

CMA Loganathan Sekar (Expert)

20 February 2012 same duty...

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

20 February 2012 There are two aspects:

1. If capital goods are removed as such, then whole 16% duty which was taken as credit will be reversed.

2. If capital goods are removed after being used then Credit required to be reversed is:

Credit taken - 2.5% reduction for each quarter on SLM basis ( In your case to be reduced for 40%)

Maninder Jain

Maninder Jain (Expert)

20 February 2012 If capital goods are removed after being put to use- it is not as such removal. The duty will be applicable on transaction value at applicable rate on such goods on the date of removal.

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