TMI BlogReverse in scrap of AssetX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, If we are scrap out our assets like our used machinery than on which amount we need to pay excise duty. On Transaction value or on after reduction of 2.5% per quarter ? We are removing as a scrap old used machinery not removing as such. Regards Swapneswar Muduli - Reply By SHIVKUMAR SHARMA - The Reply = Dear Swapneswar Please refer sub rule(5b) of rule 3 of cenvat credit rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 2004. (b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.] Shivkumar sharma - Reply By Ganeshan Kalyani - The Reply = Refer rule 5A (a) (b) of CCR 2004 . - Reply By MUKUND THAKKAR - The Reply = How much old ? if your machinery is very old and after the reduction of 2.5% your value is les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s than your Realization value, in such case you have to pay the excise duty on your Realization value. not value calculated after deduction of 2.5% per quater basis. After the scrap , If your machinery is reusable in such condition you have to follow cenvat rules. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Mukundji. Thanks. - Reply By Atul Kumar - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per Rule 5A for capital goods, other than computers and computer peripherals @ 2.5% for each quarter to be reduced from transaction value. Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. - Reply By Suryanarayana Sathineni - The Reply = Dear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Friend, It is a known fact and the same is already expressed by some of our learned friends. There are 3 options provided for in the Rule 3(5) of CCR,2004 and they are briefly, Clearing as such by debiting the amount of credit availed ; clearing after usage of some time by deducting 2.5% of credit for usage of each quarter and pay duty on the transaction value if the CG are sold in fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm of scrap. Since, your subject query is what is the duty to be paid when you are selling/clearing the used CG by way of scrap, The answer is you need to pay duty on the transaction value at which such scrapped CG is being cleared/sold. Best Regards Suryanarayana - Reverse in scrap of Asset - Query Started By: - Swapneswar muduli Dated:- 7-1-2017 Central Excise - Got 6 Replies - Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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