cenvat credit

This query is : Resolved

sanchit madan (Querist)
Follow

16 April 2011 Is there any difference between reversal of cenvat credit and payment of cenvat credit already availed? plz explain this with reference to concept of removal of capital goods as such(provide accounting entries for the same)

rajula gurva reddy

rajula gurva reddy (Expert)
Follow

17 April 2011 Reversal of Cenvat Credit and payment of Cenvat Credit already availed is one and the same. For clearance of the capital goods,one can utilise the Cenvat Credit balance if available or can pay the duty through cash (challan)

Sreekumar

Sreekumar (Expert)
Follow

20 April 2011 Reversal is reversing proportionate cenvat credit while sending back materials to supplier. Paying is the duty payment utilizing cenvat credit available. Refer Rule 3(5)(5A)(5B)of Cenvat Credit rules, 2004.

Upgrade to CAclubindia Pro. Subscribe Now!