31 March 2009
I HAVE A SMALL CLIENT WHO PURCHASE ON 18% EXCISE DUTY AND SALE ON 10% EXCISE DUTY.DURING FROM 6 TO 7 YEARS A MODVAT CLAIM RECOVERABLE STANDING AT ASSET SIDE OBOUT RS2000000 OF REMANING 8%PAID. NOW HE WANT TO WRITTEN OFF THE STANDING AMOUNT WHICH IS STANDING AT ASSET SIDE. IS THIS POSSIBLE TO WRITTEN OFF THE SAME IN THE YEAR IF YES THAN WHAT WOULD BE THE PROCEDURE OF THAT.AND PLS SUGGEST THE ALTERNATIVE.(NO EXPORT SALE)
03 April 2009
Since the amount is quite large, the client can examine the option of manufacturing high value add goods fully or partially.
If you do not want to carry this forward ( some day the same is utilisable therefore canbe carried forward) then expunging the same on grounds of non utilisation is possible.
I would ask the client to carry forward in his excise records and write it off in IT as a measure of conservativism. Check AS to confirm the view.
CAclubindia
