Nihit Dalmia (CA) (140 Points)
16 November 2011hi
a company engaged in the business of minning owns several dumpers and tippers. the company now wants to sell one of its tippers/dumper after using it for 5 years. the company have availed the CENVAT Credit at the time of purchase. now if the co. wants to sell the tipper/dumper what will be the beast way to mitigate the reversal of cenvat credit and if possible to what extent.
waiting for your kind reply
regards
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 16 November 2011
you have to reverse 100 percent as reversal is being given for computers not other capital goods,im not sure lets wait for others opinion
regards
sripal
CA Ghanshyam Joshi
(CA, Dip IFR (ACCA UK))
(3229 Points)
Replied 17 November 2011
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 17 November 2011
Reduce 2.5% per quater of use from credit originally taken . Resultant is the redit to be reversed.
HS Negi
(Senior Executive- F&A)
(590 Points)
Replied 17 November 2011
Dear Nihit
I am 100% agree with Mr. Nair. Please depreciate the cenvat @ 2.5% per qtr and reverse the cenvat at the time of clearance.
Best Regards
HS Negi
CAclubindia
