If a manufacturing co has purchased from FSD/SSD with excise. then for CENVAT how will it pass the entry in tally.
e.g. Purchase value - 10000 VAT @5% - 500 total - 10500
now since supplier is FSD so it pass the excise duty also for say Rs. 1200., then question is that how journal entry will be passed for Rs. 1200 CENVAT. here see as below:-
Local purchase Dr 10000 VAT Input Dr. 500 To supplier 10500
then how will be treatment for 1200 for cenvat through journal entry. if we show this as Excise duty Dr. 1200 then purchase amount have to be lessed by 1200. is it correct way. Please give your own valuable suggestion.
14 April 2015
Yes, you will have to debit the cenvat credit receivable on Input / Capital goods account, Edu Cess and SHE Cess credit receivable accounts (if applicable) and reduce the cost of purchases.
CAclubindia
