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Cenvat and importer

Parvatharaj (Service) (28 Points)

16 January 2012

Dear All,

We as an Importer need to pass any JV in our Books of Account for CVD paid on Imports & CVD passed on to the customer when sold....? If Yes what is the Entry.

Or Is it enough to file Form-2 (Quarterly Returns) without passing above JV.....!

Regards,

Parvath

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5 Replies

Bhavesh Jain (Student) (208 Points)
Replied 16 January 2012

For cvd paid on import you need to pass following entry Cenvat - basic a/c DR CENVAT E CESS A/C DR CENVAT S.E.Cess a/c dr to commissioner of income tax or bank a/c or depb if available. And there is no cvd payable on sale. Its excise duty what you pay. Right?

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Parvatharaj (Service) (28 Points)
Replied 17 January 2012

But this entry is only for Input Credit. What about the entry When passing on to customer.

Since we need to nullify the Input Credit.

Parvatharaj

Bhavesh Jain (Student) (208 Points)
Replied 17 January 2012

Ok at time of export you ll pass the following entry for the excise duty to be paid.. Excise duty receivable on export a/c dr To cenvat basic to edu. Cess to s.Edu. Cess. Excise duty paid on export is shown as receivable because the department gives rebate(refund) for the excise paid on it..Hope it clarifies