Duty Depression on old machine

[tasvir sharma]

We are manufacturer of die casting component, we have purchase a machine in fy. 2011-12 and now we sold the machine on depression value. Please tell me about correct duty calculation, duty calculate quarterly 2.5% dep. Or fixed 12.36%. (both calculation giving below)

Fixed                                                                                  Quarterly dep.

Assayable Value after m/c dep.                            Assayable Value after m/c dep.    

                          70,000/-                                                              70000/-

          12.36%     8652/-                                        Dep. Duty   6500/-

   Please tell me correct calculation. 

 

[YAGAY and SUN]

You can avail the benefit of @ 2.5% deduction per quarter and pay the duty accordingly.

AI Summary

Depreciation allowance on used machinery: quarterly deduction may be applied to calculate duty on sale.
Calculation of excise duty on the sale of a used die casting machine may be performed by applying a quarterly depreciation deduction to the machine's value; the manufacturer may avail the benefit of the quarterly depreciation allowance and pay duty on the reduced assessable value rather than using a single fixed deduction.