TaxTMI 
TaxTMI 
excise on sale of machinry
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....xcise on sale of machinry<br> Query (Issue) Started By: - APPALI MURTHY Dated:- 24-11-2011 Last Reply Date:- 3-1-2012 Central Excise<br>Got 3 Replies<br>Central Excise<br>1. we are selling the machinery purchased on 2 years back with out excise duty (glass annealing wire mesh conveyor electric furnace) now. whether i have to add duty on that machinery after deduction of depreciation as on date or ....
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....not 2. Another machinery purchased on 04.05.2011 with duty also now we are selling what is theimplication of excise and deprection Reply By Pradeep Khatri: The Reply: CENVAT credit will be reversed after deduction of depreciation @ 2.5% per quarter. Reply By NEERAJ KUMAR, RANCHI: The Reply: Refer to Rule 3(5) of Cenvat Credit Rules' 2004 as per the Rule: if the capital goods, on which CENVAT....
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.... Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:- (a) for computers and computer perip....
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....herals: for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @5% for each quarter in the fourth and fifth year @1% (b) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter. Reply By raj kumar shukla: The Reply: iT IS NOT CLEAR WHETHER CENVAT WAS TAKEN AGAINST MACHINARY MENTIONED AT SR. NO 1.....
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.... FROM THE QUERY IT APPEARS IT WAS NOT TAKEN. IN THAT EVENT NO REVERSAL WOULD BE WARRANTED<br> Discussion Forum - Knowledge Sharing ....