Caipital goods cenvat

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SATVEER

executive

63 Points Posted on 29 July 2013

DEAR EVERYONE,

I HAVE A QUESTIONED, IF WE PURCHASED A CAIPITAL GOODS ON 1/04/2013 for rs, 20,000. and paid 12.36% cenvat and cst as per rule, input modave taken 50% (1200+24+12=1236), after five months it means sep 2013, if sell that caipital goods then how much excise duty would be applicable 100 % or 50%

please clearify

Replies (3)

JAINENDRA JAIN

ACS/CA

1264 Points Posted on 29 July 2013

if u sell the goods u have to reverse the cenvat dredit taken earlier =rs1200/-

but please for other member to reply.

kumar hattanna

Officer - Excise

391 Points Posted on 31 July 2013

Dear Satveer.

You need to take remining 50% of duty before selling and you have to sale the capital goods "AS Such Basis'' by whaterever excise duty wich you have taken you need to reverse same.

Regards

Kumar

Arun Kumar Singh

GST Advocate

13166 Points Posted on 31 July 2013

If capital goods are removed after use, the manufacturer or output service provider shall pay an amount (a) equal to original cenvat credit taken reduced as per prescribed rates based on number of years used or (b) equal to excise duty payable on transaction value whichever is higher. Reduction allowed in original cenvat credit taken on the capital goods is reduced by 2.5% for each quarter of a year or part thereof from the date of taking the cenvat credit.