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Disallowance of cenvat credit on capital goods

Indian Accounting Standards 1182 views 1 replies

If the co. has taken Cenvat credit on Capital goods in 2007 ( through RG 23C) and subsequently, in 2011, excise authorities rejected the claim for the credit of the same. Hence,the credit had to be reversed in RG-23C in 2011.

The client ,working in SAP environment, had not capitalised. the amount equal to excise duty in 2007. What  should be the accounting treatment now, on rejection of the claim? Can it be capitalised with retrospective effect?

Replies (1)

hi,

   ya he can capitalise it ,hope its a company so it has to disclosei n notes to acoc*nts also

regards

sripal jain


CCI Pro

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