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 andSUN]

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

AI Summary

Manufacturer Advised to Use 2.5% Quarterly Depreciation for Duty Calculation on Machine Sale from 2011-12 Purchase A manufacturer of die casting components sought advice on calculating the correct duty after selling a machine purchased in the fiscal year 2011-12 at a depreciated value. They inquired whether to apply a quarterly depreciation rate of 2.5% or a fixed rate of 12.36%. The response advised using a 2.5% deduction per quarter to determine the duty payable.