Excise Duty on Scrap

This query is : Resolved

ACHARYA (Querist)
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19 May 2011 Dear Sir,

We are selling some old machineries as scraps from our factory. Do we require to pay excise duty apart from VAT?

Pl suggest

Unmesh

Unmesh (Expert)
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19 May 2011 no you don't have to pay excise duty on old machinery sold only vat will be payable

U S Sharma

U S Sharma (Expert)
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19 May 2011 capital goods clared as scrap on which input credit is not availed, are not liable for excise duty.

if input credit has been availed then you have to pay duty on transaction value.

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RAM SAINI

RAM SAINI (Expert)
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20 May 2011 if you will clear the capital goods by declaring the capital goods you have to dabit the whole duty after deprecating 10% per year

suppose capital goods are 5 year old you have to decrease the duty amount by 50% which you took credit at the time of purchase