Inter unit transfer of capital goods

[shaji thomas]

What will be the transaction value and duty involvement  when we transfer capital goods from one unit to another(sister concern)  after using the same for more than ten years.

AI Summary

Transfer of Capital Goods Between Sister Units: No Duty After 10 Years if Proof of Purchase Date Exists. A user inquired about the transaction value and duty implications when transferring capital goods between sister units after over ten years of use. Responses indicated that Central Excise Duty is generally required on the transaction value unless the goods are not removed as waste and can still produce finished goods. According to CENVAT Credit Rules, 2004, if capital goods are over ten years old, no duty is payable, provided proof of purchase date is available. It was suggested to obtain a valuation certificate from a Chartered Engineer before proceeding with the transfer.