Excise setoff from 2nd stage dealer

This query is : Resolved

Chetan Sharma (Querist)
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10 January 2014 my client has received Invoice from 2nd stage dealer

100 units Rs 10 p.u 1000
Add: Vat 4% 40
Total Bill Amount 1040

Note has indicated of on that bill of excise credit available to my client

So, Can my client take Excise credit in this case if Yes then what accounting entry should we have to pass

ACA Ketan Lohia

ACA Ketan Lohia (Expert)
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14 January 2014 Yes, Cenvat Credit can can be booked if the invoice has been issued by a registered second stage dealer, and the invoice mentions the amount of Excise duty included in the total amount.

The following entry to be passed -

Purchases A/c Dr. xxxx
CCR A/c Dr. xx
To Party A/c xxxx