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
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
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
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 ?
Aggarwal Sarawagi and Co
New Delhi
CA
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SMJ global advisors pvt ltd
New Delhi
B.Com
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