Excise on Branch Transfer of Capital Asset

This query is : Resolved

Guest

Guest (Querist)

06 February 2009 We have two units, Unit I which is excise exempt unit and the other unit, Unit - II which is covered under Excise Rules. In our case we have earlier purchased Capital Asset in Unit II which is covered under Excise. Afterwards we have transfered this Capital Asset to Excise Exempted Unit I and we have also passed on the Excise amount as per bill. Excise exempted Unit I has recorded the Capital Asstet at full value including Excise. Again the same capital asset transfered to Excise applicable Unit II by Unit I.
We want to know whether excise exempted unit I can transfer the Capital Assets at full value including excise or it has to transfer only the assessable purchase value excluding excise.
Plz guide on this matter.

nilesh kshirsagar

nilesh kshirsagar (Expert)
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06 February 2009 you have to transferred assets by exclusive of excise duty. because unit I is exempt from excise and hence cannot pass excise duty.

Pradnya Ksagar

K- Sagar Management Consultant.