Sale of Old Machinery, Central Excise

[RAM SHARMA]

Dear Experts,

We want to sale old and used machinery. Will we reversed cenvat credit  @2.5% per quater or to be charged excise duty on transaction value. Secondly can  a purchaser take cenvat credit on such cenvat reversal on machinery. Pl advice.

Thanks

Posts / Replies

[Naveed S]

Cenvat credit to be reversed after deduction of 2.5% of duty per quarter .

Yes, the purchaser can avail such cenvat credit reversed on old and used machinery.

[Harish Lath]

First of all you did not mention how old machinery was. If it is more than 10 years than you simply charge excise duty on transaction value and the purchaser take the cenvat credit of the same.

 

[RAM SHARMA]

Machinery is 5 years old. My question is that we have charged excise duty and cenvat reversed simentaniously. Secondly can  a purchaser take cenvat credit of cenvat reverse /excise duty charged on transaction value.

Thanks

[S GOMTESH]

You have to calculate  -

1.  duty for reversal @2.5% per quater

2.excise duty on transaction value

Whichever is higher needs to be paid.

[SANDIP PARIHAR]

@2.5% per quarter charge on transaction value

pl. send example for old machinery sale