hallo, we purchased transformer (Capital Good) on 12.2003 at that time excise duty was 9.6% and now we want to sale this transformer. then pl. guide what is the procedure for the sale (i.e. how much duty to be levied is - excise duty @ 10%, education cess @ 2%b & SHE cess @ 1& on invoice is as per rule or not) i am very confuse. Pl. anyone guide me matter is very urgent. thanks in advance.
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Capital Goods sale
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IF YOU PURCHASE ON 12/2003, THEN NO NEED TO BOTHER.
THERE IS NO PROVISION TO REVERSE CENVAT CREDIT.
One of the proviso rule 3 of the cenvat credit rule 2004, says that if any capital goods on which cenvat credit has taken in past are removed after being used then manufacture is required to pay an amount equal to the cenvat credit reduced by a certain percentage. in your case it is 2.5% per quarter.
| Originally posted by : CA. SANAT PYNE | ||
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IF YOU PURCHASE ON 12/2003, THEN NO NEED TO BOTHER. THERE IS NO PROVISION TO REVERSE CENVAT CREDIT. |
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I THINK WE HAVE TO LOOK WHAT IS THE RULE PREVAILING BEFORE CCR 2004 CAME INTO EXISTENCE.
When the capital goods are cleared after some time of their usage, then the credit availed on the said goods from the date of availing is to be quantified at 2.5% per quarter i.e., 10% per year and you can reduce this credit from the credit amount aviled and then clear them on payment of balance credit availed on the same. If the same are cleared as scrap, then you can clear the goods on payment of duty on the transaction value.
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