Clarification about capital goods

Dear Kumar Hattanna,

Excise point of View:-
The machinery (capital goods) you sold would be governed by the provision of Rule 3(5A) of Central Excise Rules, 2002 [as amended after N/N: 18/2012].

You are required to pay an amount to the Excise Dept, after following calculation:-
Total CCR claimed                                                                        XXXX
Less: 2.5% for Each Qtr. or part thereof                                     XXXX
            from date of taking CCR
                                                                                                    ----------
Amount Payable                                                                               XXXX
                                                                                                     ----------

or

Amount Payable = Transaction Value i.e. Selling Price X Rate of Duty on date of sale
     [WHICHEVER IS HIGHER]

Income Tax Point of View:-
the sale of machinery would be governed by the principles of Block of Assets. i.e. if you are selling the machinery above the WDV, or above the purchase price... you would be treated accordingly...
and if you are selling it below that price, no impact it would leave on your income.
Kindly provide more details to get more informed in this regard.



Thanks and regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405