Treatment on sale of capital goods

parvesh garg (Student CA / Articleship)   (100 Points)

06 September 2016  


If a company (Manufacturing entity) make/manufacture a capital goods in house by purchasing required material and later on sale it.

So question is:

  1. What is treatment of input excise duty on purchase of raw material duty use in manufacture of capital goods. Is it will claim in same manner as capital goods 50% in a year or it will claim as purchase of input material and claim 100% credit in same year.
  2.  What is treatment on sale of capital goods which company manufacture in house (as mentioned above). Is excise duty is leviable on sale of that capital goods or not. what kind of invoice is to be raised on sale of capital goods.