07 August 2011
Taking credit means the while booking the invoice or making the payment accounting the credit availability of CENVAT in invoice, utilizing means the same credit we are adjusting against the tax payment
Guest
Guest
(Querist)
07 August 2011
wanted to clarify,
in essence, taking credit is an accounting entry
while cenvat credit is adjusting against actual tax payment...
another question.. does any of the above relate to crediting and debiting the PLA??
08 August 2011
Yes. Taking Credit is accounting entry. At the time of utilisation, it is accounting entry as well as debit to PLA as you are utilisng it.
Guest
Guest
(Querist)
08 August 2011
Thank you:-)
Also, why would the department be so bothered by how an assessee takes credit?? what should matter to them is the utilisation...
09 August 2011
Under the given context taking the credit and utilizing the credit is same thing, without utilization of the credit there cant' be ultimate taking of the credit. The differentiation done on the basis of accounting treatment signifies only the sequencing effect as it did happen in the instant case. An effective accounting transaction would mean to include the financial impact-inflow/outflow in real terms.