Disposal of Asset As a scrap

[Asked by Guest]

Dear Sir,

We disposed our old unused assets as a scrap and we remove this assets from our books of accounts.

So we need to pay excise how much sale value we received from scrap sales or we calculate reduce 2.5 % per quarter and than we pay the duty accordingly which one is correct method in above case ?

Regards

Swapneswar Muduli

AI Summary

Transaction value governs excise duty on scrapped asset sales; clearly label invoices to reflect scrap nature.
Disposal of obsolete assets as scrap is subject to excise duty based on the transaction value - the actual sale proceeds realised - rather than a valuation computed by applying a periodic depreciation percentage; invoices should expressly describe the goods as "scrap" or "scrapped" to document the nature of the sale.