ankush wakhure (account executive) (59 Points)
19 March 2015Dear All,
I have some confusion about reversal of CENVAT CREDIT on Transfer of capital goods. Whether we have to reverse whole cevat credit on transfer of capital goods (Machinary ) even after we have used the machinary for 4-5years . If not please provide the suggations. The transfer of capital goods is within the same group ( same company name & management) located in different place.
please suggest...
Thanks & Regards,
Ankush
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 19 March 2015
As per Rule 3(5A) of Cenvat credit Rules,2004-credit to be reversed fort P&M other than computers to be reversed as under higher of I and II:
I. Credit taken xxxxx
Less:(-)2.5% of input excise paid for every quarter or its part xxx
where No. of qtrs=Date of removal (-) Date of taking credit for the first time
II.Duty leviable on transational value of goods removed.
Credit to be reversed is higher of I and II.
ankush wakhure
(account executive)
(59 Points)
Replied 19 March 2015
Dear sir
please explain the option II.Duty leviable on transational value of goods removed.
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 19 March 2015
Duty payable on tranaction value as per Central Excise(Valuation Rules)...in your case sale consideration if any received.
So Higher of I and II will be reversible.
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