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modvat

madhukar (student) (306 Points)

08 October 2007

hi friends

let me know while computing material consumption deduct whether modvat credit taken or availed

pls clarify as soon as possible

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3 Replies

Anand (481 Points)
Replied 08 October 2007

r u asking from accounts angle or tax angle??

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Ravikumar.G (Consultant) (18525 Points)
Replied 08 October 2007

CENVAT credit availed should be considered for materials consumption. If the same is added in your turnover you can also added the same amount in the material consumed other wise you should not. Because the cenvat to be availed is a balance sheet item not a revenue item you can avail upto its exaust.

Ravikumar.G (Consultant) (18525 Points)
Replied 08 October 2007

as per accounting standard and accounting standared interpretation the entities need to compulsarily disclose their grossed up turn over in the financial statements