Machine Amortisation

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Guest

Guest (Querist)

21 June 2010 Dear Sir,

My company m/f a automobile components.

Excise dept. give a notice to me pay the machine amortization value but how should calculate the the value per component? What do you mean Machine Amortization?.

Machinery receive from customer

There is any case law or any rule in excise in favor of Assess.

Regards

Yogesh

9765402179

Prem Ketan

Prem Ketan (Expert)
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21 June 2010 When you got the machine or tool/mould from customer free of cost then the question arise for amortization.

In this case you have to take the opinion/Certificate of the Chartered Engineer about the machine/tool/mould capicity of production(how many unit you can make from that machine)

For example : cost of Machine is 1,00,000 and you can produce 10000 part from that machine, then you have to amortize Rs. 10 per part for calculation of excise duty.

if your salling price is Rs. 100 then add 10 for Amortize and calculate excise duty on that value.