Payment of EC on sale of used and old car, Central Excise

[Pradeep Jain]

Dear Sir,

We are doing the manufacturing of Automobile Components. We want to sale the old and used car on which cenvet credit not taken . Do we need to duty at the time of sale.

Regards

Pradeep Jain

Posts / Replies

[Pradeep Khatri]

Dear Pradeep,

You are not required to pay any duty on such sale of old/used vehicles on which no CENVAT credit was availed.

However, you would be under obligation to pay the VAT as per your State Vat laws.  Please check this aspect also.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)