Disposal of Asset As a scrap, Central Excise

[Swapneswar muduli]

Dear Sir,

We disposed our old unused assets as a scrap and we remove this assets from our books of accounts.

So we need to pay excise how much sale value we received from scrap sales or we calculate reduce 2.5 % per quarter and than we pay the duty accordingly which one is correct method in above case ?

Regards

Swapneswar Muduli

Posts / Replies

[KASTURI SETHI]

Transaction Value is correct.

[surya narayana]

Dear Friend,

I endorse the view of Shri. Kasturi Sethi Ji while giving a small advise as an abundant caution that please ensure mentioning in the clearance invoice after the item name ( Scrap ) or write as as a prefix Scrapped to the item name.

Best Regards

Suryanarayana

[KASTURI SETHI]

Sh.Surya Narayana Ji,

Thanks Sir for correctly completing my reply.

[Ganeshan Kalyani]

Thanks to experts. It enriched my knowledge. Thanks.