After availing the CENVAT.
Is that possible in any senario to show the Excise Duty Paid as Indirect Expense in the P&L.
or elese this (excise duty paid should be grouped under direct expense ?)
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 June 2015
Cenvat credit is a current asset a/c and it is to be adjusted against excise duty payable (on sales). It does not appear in P&L a/c
Anand
(NA)
(97 Points)
Replied 29 June 2015
Excise duty paid on purchase bills can be taken as indirect expense ?
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 June 2015
If cenvat credit is not availed, then it is part of purchase cost only (not indirect exp)
Anand
(NA)
(97 Points)
Replied 29 June 2015
for example Rs.100 Excise duty. from purchase bills
Rs.10 ST from telephone bills
Balance Rs.90. shall we take this as indirect expense
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 June 2015
U mean output service tax payable is Rs.10 & excise duty on purchase bill is Rs.100 and hence the balance credit balance in cenvat a/c. If so, since u have already utlized part of the cenvat credit, balance cannot be transferred to P&L as indirect exps. U can show the balance as cenvat credit under current assets. Hope this is clear.
Anand
(NA)
(97 Points)
Replied 29 June 2015
what to do with excise duty paid on stock transfer invoice
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 June 2015
u mean u have transferred goods to yr branch on stock transfer basis and charged duty on that? If so, it is your liability and need to pay to govt after adjusting any cenvat credit in the a/c. when such goods are sold from the branch, no need to charge ED again
Igor
(Student CA Final )
(28 Points)
Replied 29 June 2015
Madhusudhanan. S
(Articles)
(26 Points)
Replied 30 June 2015
Anand
(NA)
(97 Points)
Replied 30 June 2015
Excise Duty Paid on Stock Transfer
To be shown as Indirect Expense ?
Anand
(NA)
(97 Points)
Replied 30 June 2015
Excise Duty Paid on Stock Transfer
To be show as Indirect Expense ?
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