Cenvat on caipital goods

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SATVEER

executive

63 Points Posted on 02 March 2013

Dear Sir,

i have purchase a machinary(Caipital goods) on dated 01/04/2012 and availed cenvat 50% for rs, 3000, and due to some reason, i had to sell that in july 2012, how much cenvat should be apply on that machine

thanks

Replies (2)

SAGAR

ARTICLED ASSISTANCE

131 Points Posted on 02 March 2013

Dear satveer,

as per excise notification no 39/2007, the manufactorer has to reverse the cenvat credit utilised on Capital goods decreased by 2.5% per quarter, which has been sold subsequently.

Example: A XYZ ltd purchased a machinary on dt 05may 2011, costing 10crores and excise duty paid was 4 lakhs. so input credit available and utilised for the FY 2011-12 was 2lakhs.

they sold the machinary on 06jun12. so the XYZ ltd has to reverse the input credit utilized 2lakhs Less 2lakhs*(2.5%*4) ie 1.8 lakhs

priyanka

accountant

47 Points Posted on 05 March 2013

as per excise notification no 39/2007, the manufactorer has to reverse the cenvat credit utilised on Capital goods decreased by 2.5% per quarter, which has been sold subsequently. Example: A XYZ ltd purchased a machinary on dt 05may 2011, costing 10crores and excise duty paid was 4 lakhs. so input credit available and utilised for the FY 2011-12 was 2lakhs. they sold the machinary on 06jun12. so the XYZ ltd has to reverse the input credit utilized 2lakhs Less 2lakhs*(2.5%*4) ie 1.8 lakhs

As said by you Capital goods should be decreased by 2.5% per quarter, but you are decreasing with 4 month as example given by you, should it be multiply by 3 ?