Entry in books of first stage dealer

This query is : Resolved

abhilasha jain (Querist)
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24 August 2013 Can First stage dealer book Excise duty Paid as Assets on Purchase of Excisable Goods.

What will be the Entry in his Books on Purchase and sale?

How the Valuation of Closing Stock will be done?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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24 August 2013 Yes, Dealer can book as an asset if they have purchase the capital goods with excise duty paid. Dealer can not utilise the credit.

abhilasha jain

abhilasha jain (Querist)
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24 August 2013 Not CApital Goods. I am asking about the excise duty to be passed on.

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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24 August 2013 Yes, you can pass the excise duty if not passed then duty will be add in the assessable value.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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24 August 2013 All cost relating to the assets, including Excise duty, will be capitalised.

But dealer is not eligible to claim cenvat on Excise Duty paid on Asset, as per rule 3 of Cenval Credit rules 2004.