Paramesh S (Finance Manager) (205 Points)
11 May 2016Dear All,
Our company purchased one machinery in 1999. We will sold the machinery in this month end. My question is excise duty arised on this sale? Please suggest me and mention rule numbers also.
Thank you.
R.P.Singh
(Advocate & Consultant)
(1173 Points)
Replied 11 May 2016
Yes, you have to pay central excise duty on remvoal of capital goods as per Rule 3(5) and 3(5)A of the CENVAT Credit Rules, 2004.
Niraj Kumar Sinha
(Sr. Officer, SPSIL)
(648 Points)
Replied 12 May 2016
If machine is in good condition and it is sold as machine, then charge depreciation @ 2.5% per quarter on CENVAT Credit availed on this machinery (at the time of purchase) and reverse/pay the balance amount. Also calculate the excise duty on present sales value. If this excise duty comes more than above then charge this amount.
If Machine is sold as Scrap then charge Excise Duty @ 12.5% on sales Value.
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