Dear CA members
Issue regarding sale of used capital goods.
We have purchase the capital goods on 13.05.2013 for Rs.136000, and we have paid the Duty amount of Rs.16809.60 by 12% 2% and 1% respectively.
Now management has decided to sale this machinery to Rs.48000,
Please help to calculate the duty amount.
Note: We have availd and utilized the duty 50% in the year of purchase and remaining 50% in subsequent year.
Regards
Dear Mr Kumar Hattanna,
You have to pay the duty amount equal to credit taken at the time of inward after reducing the amount of 2.5% per every quarter. If the transaction amount is less or high.
Please see the rule 5A of Cenvat Crdit rules.
Regards.
RP Ananthakumar
Dear Mr.Kumar
If the tool value is 1000 and you have taken credit 100(rate od duty10%) on 01.04.2014.
01.04.2014 to 30.06.2014 -1
01.07.2014 to 30.09.2014 -2
2 qtrs fininshed.
Value of goods is 1000
Depreciation is =1000*2.5%*2 = 50
Value after depreciation = 1000-50=950
Duty payable = 950*10/100=95
Dear Sirs
It’s just for understanding assumption. Please confirm is it correct or not.
please check the attachement of excel.
Regards
Kumar
Dear Mr. Kumar
You have taken credit 60000.00
As of now 34 qtrs completed, then the depreciation is 34*2.5=85%
So,
60000*85/100 = 51000
Duty to be paid is 60000-51000=9000
Regards
RP Ananthakumar.
Dear Ananth Sir
Thank you so much for your earlier reply. and one more question is.
For computing Quarter for ex:
Date of purchase: 01.04.2012
Date of Sale: 29.10.2014
01-04-2012 to 31.03.2013 – 4 quarter
01.04.2013 to 31.03.2014 – 4 quarter
01.04.2014 to 30.09.2014 – 2 Quarter
01.10.2014 to 29.10.2014 – 29 Days
Total no of Quarters are 10 quarter 29 days.
In this case how do I treat 29 days?
Please let me know.
Dear Kumar
Completed qtr only taken for calculating depreciation. If you feel that you are lossing much amount for 29 days then you can contact your range supdnt and caluculate daywise for that 29 days.
Regards,
RP Ananthakumar
Dear Kumar
Completed qtr only taken for calculating depreciation. If you feel that you are lossing much amount for 29 days then you can contact your range supdnt and caluculate daywise for that 29 days.
Regards,
RP Ananthakumar
Dear Ananth,
If capital goods As such removal means.
actual credit taken amount should be reversed na sir. any change is there.
Dear Sathya
They have used that machine more than 1.5 year. the value of the machine is come down. so that they have entitled to claim depreciation. Hence we need not to pay duty equal to credit taken.
Regards
RP Ananthakumar.
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