Excise entries

This query is : Resolved

Mallika Shah (Querist)
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18 July 2014 my assessee is a job worker.He receives goods from a company for processing it into powder, my assessee is liable to pay excise duty on removal of goods. he does so same.
he also takes cenvat credit of bottles received from company's consginor.the bill of bottle is in name of company but recived in my assesse's premises and hence he takes cenvat credit of same.
how to enter this in tally .it should reduce excise liability.

CA Parul Saxena

CA Parul Saxena (Expert)
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18 July 2014 Central excise duty input Dr.
To vendor
and at the time of payment of excise adjust input against output:-
Central excise duty output Dr.
To Central excise duty input
To Central excise duty payable

But how can you take cenvat of the bottles as you have not paid any excise duty on purchase of bottles??????

Vishnu Saboo

Vishnu Saboo (Expert)
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23 July 2014 You can open a liability a/c like Cenvat payable on free issue material.
now when free issue material is received say cenvat on same is 100/-. instaed of giving credit to vendor, you pass

Cenvat credit a/c Dr 100
To Cenvat payable on free issue material 100

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