Sale of used machinery-capital goods from sez to dta

This query is : Resolved

Naresh Singrakhia (Querist)
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02 July 2014 Dear Sir,

Please note we have imported a machinery by availing SEZ benefit in 2011. Now we want to sell it to a DTA Unit. Please advice:
1. how to calculate the depreciation value?
2. can we sell on a price more or less than the depreciation value?
3. is there any valuation method acceptable by customs for machinery?
4. On what value the customs duty will be applicable - on the invoice selling price or depreciation value?

Thanking you,

Regards,
Naresh Singrakhia

Swanand

Swanand (Expert)
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03 July 2014 In this case key issue is that You are selling Machine as What ? either it is Second Hand Sale or Scrap Sale ?

If it is scrap sale only Customs come in to picture. and if it is second had sale then DC & Customs comes into picture. Procedure & calculation are for both are different.

However in any case custom will charge duty on Invoice Value only, if they are in doubt about valuation they will go for fair market value as in normal case.