As per proviso to rule 3(5) of CCR, CENVAT taken on capital goods (Comp. & Comp peripherals) is reversed using Percentage points SLM Method as 10%, 8%, 5%, 1% for each quarter in Year 1, 2, 3, 4.
My Query is How to calculate the amount to be reversed?
As per Prac. Manual Q 14 of CCR , Amount to be reversed is Amount of Excise duty (TOTAL) X %age.
whereas as told by one of the teacher it should be :
50% booked in First year x %age of respective years plus
remaining booked in 2nd Year x %age of respective years
for example : Excise duty of 100000. , asset disposed off in the last month of third year
as per Prac manual : 100000 - 100000 x (10% x 4 + 8% x 4 + 5% x 4) = 8000/-
as per the teacher : 50000 - 50000 x (10% x 4 + 8% x 4 + 5% x 4) = 4000/-
50000 - 50000 x (10% x 4 + 8% x 4 ) = 14000/- ie total 18000/-
now which one is correct???????????????
CAclubindia
