09 May 2013
One of my client being a Pvt Ltd.Co.engaged in manufacturing activities & also covered under Excise law. that is the co. is availing Cenvat Credit on Inputs/input Services & also charging Excise duty on Finished Goods Sold respectively.
During the course of F.Y.2012-13 one consignment of Finished Goods returned by the customer.(i.e. sold in May,2012 & again returned in June,2012)due to rejection by quality deptt.
Now the query is how to account for such Transactions in Books of Account as well as Excise records (i.e. in RG1 & RG 23A PartII)specifically as to Excise duty portion like Basic 12%,EC 2% & HEC 1% respectively along with Value of Goods returned.
09 May 2013
Any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2004 and utilise this credit according to the said rules.
11 May 2013
I am agree absolutely with reply of Mr. A.K. Singh but I want to add here as per your query:- (1) You will make following entry in your Books of Accounts, if Basic sale value of goods is Rs. 10000/= :-
Sales Return A/c Dr. Rs. 10000/= Cenvat A/c Dr. Rs. 1200/= Edu.Cess A/c Dr. Rs. 24/= S.& H. Edu.Cess A/c Dr.Rs. 12/= C.S.T. of Vat A/c Dr. Rs. 225/= (can be varried as per your transaction) Party Name A/c Cr. Rs. 11,461/=
(2) You will enter its quantity in your RG23A PT-I as an input and will issue to floor for further processing.
(3) You will take cenvat credit in your RG23A PT-II as usual.
THANKS. Please click on "Thank User", if you are satisfied with my reply. Rajeev Kumar Garg (M.Com, L.L.B.) Consultant (Excise, Customs & Service Tax)
11 May 2013
I am agree absolutely with reply of Mr. A.K. Singh but I want to add here as per your query:- (1) You will make following entry in your Books of Accounts, if Basic sale value of goods is Rs. 10000/= :-
Sales Return A/c Dr. Rs. 10000/= Cenvat A/c Dr. Rs. 1200/= Edu.Cess A/c Dr. Rs. 24/= S.& H. Edu.Cess A/c Dr.Rs. 12/= C.S.T. of Vat A/c Dr. Rs. 225/= (can be varried as per your transaction) Party Name A/c Cr. Rs. 11,461/=
(2) You will enter its quantity in your RG23A PT-I as an input and will issue to floor for further processing.
(3) You will take cenvat credit in your RG23A PT-II as usual.
THANKS. Please click on "Thank User", if you are satisfied with my reply. Rajeev Kumar Garg (M.Com, L.L.B.) Consultant (Excise, Customs & Service Tax)
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