Asset transfer - cenvat credit rules - excisability.

507 views 1 replies

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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