Reverse in scrap of Asset

[Swapneswar muduli]

Dear Sir,

If we are scrap out our assets like our used machinery than on which amount we need to pay excise duty.

On Transaction value or on after reduction of 2.5% per quarter ?

We are removing as a scrap old used machinery not removing as such.

Regards

Swapneswar Muduli

AI Summary

Excise Duty on Scrapped Machinery: Pay on Transaction Value per CENVAT Credit Rules 2004, Adjust for Old Machinery. A user inquired about the excise duty applicable when scrapping used machinery, asking whether it should be based on transaction value or after a 2.5% quarterly reduction. Respondents advised that, per the CENVAT Credit Rules 2004, duty should be paid on the transaction value when capital goods are cleared as waste or scrap. Additional guidance was provided, noting that if the machinery is very old, and the reduced value is less than the realization value, duty should be paid on the realization value. Different rules apply if machinery remains reusable.