Dear Friends
With reference to disclosure of payment of duty on removal of capital goods from premise in ER-1
My Doubt is
1. Should it be shown in column 3(Details of manufacture, clearance and duty payable) or is it enough to mention the same in CENVAT tab( The sheet where we disclose cenvat utilization).
2. Please provide me the rates at which the input is available on capital goods when it is removed after say 3 years( rate at which the input is reversable)
Dear Victor
1. It is enough to mention the same in CENVAT tab, the sheet where we disclose cenvat utilization (Point no. 8 and Sl.no. of 12 of the ER 1 return). For your kind information I'm attaching the ER 1 pdf with this message
2. In case of payment of excise when we are removing the capital goods the following higher should have to pay either through CENVAT Credit or cash.
Value of Capital goods Rs. 100000 , Rate of Duty 10%, Input credit taken on capital goods is Rs. 10000
a) Amount of CENVAT credit taken on capital goods 100%
Less: No. of Quarters Capital goods utilised * 2.5%
(2.5% for other than computers and computers
peripherals)
For 3 years usage (3yrs * 4 Quarters * 2.5%) 30%
Banlace is 70%
70% of 10000 = Rs. 7000 or
b) rate of duty is 10% when clearing the capital goods on transaction value
It mean that the Rs. 100000 value of capital goods sold after 3 years for Rs. 20000
duty on 20000 is Rs. 20000 * 10% = Rs. 2000
So, higher of Rs. 7000 (point a) and Rs. 2000 (point b) is Rs. 7000
So, duty is 7000 we have pay either through cenvat credit or in cash.
dear sir
imported capital goods we have taken credit of cvd and additional duty
same rule we follow for additonal duty treatment or not
please clear
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CAclubindia
