Sale of capital second hand plant & machinery

Invoice is not required for sale of old machinery. A written document must suffice it. You can not issue a trading invoice for sale of old machinery.

Further you cannot charge Excice / VAT for the old machinery as it is not sale in the nature of trade. Sale of fixed asset cannot be regarded as trade sale. Its a special transaction & not a normal transaction.

Mr. Divya K S is right.

Clearing of capital goods too requires payemnt of excise duty... if  capital goods are sold as scrap then excise shall be calculated on Transaction value & if capital goods are sold after use then company has to reverse the duty @ 2.5% per quarter so if capital goods are sold after 10 years then no need to reverse the duty...... Also if the company hasnt paid excise duty during the time of purchase then no need to pay duty on sale of same...

further VAT shall be applicable on sale of such capital assets as per the rates prescribed in state wise vat act..

Instead of Invoice the details can be furnished in the Letter Head of the Company as a documentary evidence.

can any body tell us sample invoice of sale of capital asset on which we have availed cenvet of Rs 500000 and sold the machine at 1500000.after 4 years 

Pls provide sample invoice in the above care

reply will well appreciated 

Arun