25 September 2011
A client of mine has availed cenvat credit in plant & machinery.It is the credit availed for previous months and not of the corresponding month.
I would like to know how this should be shown in books of accounts.
Can this amount be shown as income in P&L account?
01 October 2011
Credit can be taken even if it is relating to previous months.
The Cenvat credit taken on purchase of Plant and Machinery cannot be taken as an income in P&L Account. It should be deducted from the value of the asset capitalised.
CAclubindia
