Sale of fixed asset - ups

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2013 We are a manufacturing company. We are selling Computer UPS as scrap. what are the consequences of VAT & Excise. Also need the format of invoice for the same.

Pls reply

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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26 February 2013 YOUR QUESTION HAS SOME DOUBT THAT WHAT IS YOUR FINAL PRODUCT AND WHAT IS COMPUTER UPS. PL CLEAR.
THANKS.
RAJEEV KUMAR GARG
CUNSULTANT & EXPERT IN CUSTOMS, CENTRAL EXCISE& SERVICE TAX.
PH. NO. 7500802402, 9412167133.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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26 February 2013 AGAIN, IT SEEMS THAT YOU ARE SELLING OLD AND USED U.P.S. AS A SALE OF CAPITAL GOODS. IN THIS CASE, IF YOU HAD TAKEN CENVAT CREDIT ON SUCH CAPITAL, YOU HAVE TO PAY EXCISE DUTY AS PER FOLLOWING RULE. IF YOU HAD NOT CLAIMED CENVAT CREDIT ON THOSE U.P.S., YOU NEED NOT TO PAY EXCISE DUTY.
SPECIFIC RULE:-

that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-(a) for computers and computer peripherals:

(i) for each quarter in the first year @ 10%

(ii) for each quarter in the second year @ 8%

(iii) for each quarter in the third year @5%

(iv) for each quarter in the fourth and fifth year @1%

(b) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter]]

THANKS.
RAJEEV KUMAR GARG
CUNSULTANT & EXPERT IN CUSTOMS, CENTRAL EXCISE& SERVICE TAX.
PH. NO. 7500802402, 9412167133.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2013 Thanks rajeev,
Yes u r rite its used Fixed asset.
We have not taken excise credit. But Input VAT credit has been taken on purchase during 2008. Should we collect VAT on sale now. Can invoice be issued for such sale in the running invoice number sequence?

Awaiting your early reply.
Thanks

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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27 February 2013 yes, you should charged and paid VAT on such sale value. You can issue your invoice from your running invoice book.
Thanks
Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)
Ph. no. +91 7500802402