TaxTMI 
TaxTMI 
Inter unit transfer of capital goods
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....nter unit transfer of capital goods<br> Query (Issue) Started By: - shaji thomas Dated:- 29-3-2012 Last Reply Date:- 6-4-2012 Central Excise<br>Got 5 Replies<br>Central Excise<br>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. Reply By Pradeep Khatri: The Reply: You would....
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.... need to pay Central Excise Duty on the Transaction value of the capital goods. Reply By Pradeep Khatri: The Reply: Further, if such capital goods are not removed as waste and scrap and it is capable to manufacture finished goods, then no need to pay the Central Excise duty. Reply By Dilip Darji: The Reply: Dear sir. Please refer Sub-rule 5 of Rule 3 of CENVAT Credit Rules, 2004. (5) When in....
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....puts or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to....
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.... in rule 9: Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service : Provided further that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to ....
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....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 peripherals: for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @5%....
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.... 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. **************************************************************************************************** This indicates that if the Capital Goods are more than 10 years old, you need to pay anything. Onus lies on you to prove that Capital Goods were purch....
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....ased before 10 years. This applicable even for removal to sister concern also. Regards. DILIP DARJI. Reply By Naveed S: The Reply: Yes, i also agree.... However, it would be advvisable to get a Valuation certifiate from a Chartered engineer and acordingly therafter sell the machinery.. Reply By ram ratan: The Reply: There is no need to pay the Central Excise duty after using the same for mo....
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....re than ten years<br> Discussion Forum - Knowledge Sharing ....