CST

This query is : Resolved

survesh (Querist)
Follow

21 June 2010 Dear Sir,

A prop firm has purchased Mould Machine:

Mould Machine : 2090000.00
Excise : 209000.00
Ed Cess : 5000.00
CST 2% against C Form 49000.00

Total Payable : 2353000.00

What entry should I Pass for Booking Fix Asset. The Firm is Manuf. he pays Vat,Cst,Servicetax.

Can he get benefit of Excise Duty & CST Duty or all the Amount should be capitalized.He Had paid 27000.00 Transportation & 11000.00 Installation Charges.Please give me the perfect Idea & entry and logic to be used.

Transport,Excise,CST all shoud be Capitalized with Machine

Thanks & Regards

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)
Follow

21 June 2010 please mention in which state are you sitiuated,

Usually no set of is available for CST

As regarding Cenvet, if you take credit, you will not be allowed deprecation under income tax,

you will be allowed cenvat credit, equally in two years. i.e. half in first year and balance in next year.

If you are taking credit for taxes, you must reduce the amout from cost of machinery,this amount should not be capitalised

Transport and Installation charges to be capitalised