Q 1. what is the excise duty charged on removal of capital goods from one unit to another unit where the assets was originally purchased for rs. 20,68,036 (date of purchase April, 2007) excise duty paid at the time of purhcase rs. 281,416/- (including cess). now it is sold for Rs. 11,43,000/- (date of sale 30 Sep. 2011) ? Both units have diffterent VAT, CST registration no.
Q 2. Does this transfer of capital goods attract profit ?
1) 4.5 Years = 18 quarters = 2.5%*18 =45% total dury reduction i.e you have to pay 55% of excise duty credit availed on such capital goods at the time of clearance
2) if both the units are accounted at same in common P/L and balane sheet, then no impact, but you have to clear the goods at WDV value, if its not maintained, then stcg will arise.
Shyam Joshi & Associates
Pune
B.Com
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