top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

What would be the tax liability on removal of capital goods after use?

+1 vote
131 views
What would be the tax liability on removal of capital goods after use?
posted Jan 2, 2018 by Adarsh

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

Where ITC has been availed, higher of the following would be payable:
(i) amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by the percentage points as may be specified (i.e 5% per Qtr)
(ii) Tax on the transaction value of such capital goods or Plant and Machinery determined under section 15 of CGST Act.

However, in case of bricks, moulds and dies, jigs and fixtures are supplied as scrap, the taxable person may pay tax on the transaction value of such goods determined under section 15 of CGST Act.

answer Jan 3, 2018 by Naveen Kumar
...