26 September 2013
Dear Sir, we purchase some capital goods and availed input tax. Used above goods for 5yrs and now we are going to sell that capital goods.
my query is whether we should charges excise duty on the above sale?
26 September 2013
As per rule 3(5A) of cenvat credit rules as amended w.e.f. 1.4.2012, if capital goods are removed after use, the manufacturer or output service provider shall pay an amount equal to original cenvat credit taken reduced as per prescribed rates based on number of years used. cenvat credit originally taken on the capital goods is redused as 2.5% for each quarter of a year or part thereof from the date of taking the cenvat credit.
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