Fixed Assets Accounting

This query is : Resolved

Rajesh (Querist)
Follow

19 July 2010 Please provide me the accounting entry in case where the purchase of Fixed Asset wants to claim Cenvat Credit in that fixed asset.
For example the cost of the Fixed Asset is Rs. 118.56
Base Price = Rs.100
Excise Duty= Rs.14
VAT = Rs.4.56
--------
Rs.118.56
--------
With regards,
Rajesh.

CA SMR

CA SMR (Expert)
Follow

19 July 2010 FA A/c Dr 104.56
Cenvat Credit Receivable Dr 14
To Sundry Creditor 118.56

CA Punit

CA Punit (Expert)
Follow

20 July 2010 FA A/c Dr 104.56
Cenvat Credit Receivable Dr 7 (c.y)
Cenvat Credit Receivable Dr 7 (next yr.)
To Bank/Sundry Creditor 118.56

instead of capitalizing, VAT credit can also be availed if the FA is plant & machinery for manufacturing unit.

Upgrade to CAclubindia Pro. Subscribe Now!