Tuesday, October 15, 2013

Removal of Capital Goods on which CENVAT credit has been taken

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 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:-

for computers and computer peripherals:
for each quarter in first year @ 10%
for each quarter in second year @ 8%
for each quarter in third year @ 5%
for each quarter in fourth & fifth year @ 1%

for capital goods, other than computers and computer peripherals @2.5% for each quarter

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