cenvat credit

This query is : Resolved

C.A.Harish Singh (Querist)
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03 September 2009 if i have 2 take cenvat credit on capital goods then whether education cess & highier education cess also to be taken as cenvat credit. For Example

cost of machiene 100
add- Exice Duty 16
Add Edu.cess @3% .48
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116.48
Vat - 4.65
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121.14
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Now what amount should be trancefred 2 cenvat credit and what amount 2 machine a/c/

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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03 September 2009 yes education cess and SHE should be trfs to cenvat acount..your entry will be

Machinery account Dr. 1046.592
Cenvat Credit Receivable Dr 80.00
Education cess receivable Dr 01.60
Secondary Cess Dr 00.80
Deferred Cenvat Credit Dr 80.00
Deferred Education Cess Dr 01.60
Deferred Secondary Cess Dr 00.80
To Party A/c 1211.392

you can round off the amount...