Insertion of capital goods in Input definition

[arbs sarma]

Sirs,

In the recent budget input definition under CCR, 2004 was amended and a new clause (v) is inserted in rule 2(k) i.e., input means all capital goods having value upto 10000 rupees per piece.

query:

CG having value upto 10000 per piece means is it the assessable value or the invoice value (i.e., value including all taxes)

AI Summary

Definition of value for capital goods focuses on tax exclusive transaction value versus invoice inclusive value.
An amendment added a per piece value threshold to the input definition for capital goods. Practitioners dispute whether "value" means invoice amount inclusive of taxes or the transaction/assessable value excluding taxes; several practitioners favor the transaction/assessable value reading. The document further distinguishes "value" (used for duty/valuation) from "cost" (total paid including taxes, freight and handling) for inventory and duty treatment.