about entry of sale of capital goods in ER-1.

[MEHUL ASHAR]

Respected Sir,

                         One of my clients has sold machiney(excisable)now is it  necessary to show the whole amount of duty in the capital goods input as such in the ER-1 or we can part the entry in two as one part in credit & other in the PLA, is it valid or not please guide as soon as possible.

[YAGAY andSUN]

You may debit the required amount of duty from PLA as well as CENVAT credit  account.  It is legal to show and debit in such way.

 

[SHASHIKANT WATEKAR]

show in ER-1 , CAPITAL GOODS AS SUCH REMOVED. IN DUTY PAID SHEET.

AI Summary

Guidance on Recording Machinery Sale in ER-1 Form: Split Duty Between PLA and CENVAT Credit or Show as Capital Goods. A client inquired about the correct method for recording the sale of excisable machinery in the ER-1 form, questioning whether the entire duty amount should be shown as capital goods input or split between credit and the Personal Ledger Account (PLA). One response advised that it is permissible to debit the duty from both the PLA and CENVAT credit account. Another response suggested showing the machinery under 'capital goods as such removed' in the duty paid section of the ER-1 form.