At the end of the financial year we have some quantity of finished stock. For valuation of finished stock excise duty is not added.


I know that on the finished stock provision for excise duty is to be made as liability arises as soon as the manufacuting is completed BUT payment is postponed to the date of delivery of stock to customer.


My question in this regard is :


1)What is the journal entry that needs to be passed on 31 March for making provison of excise duty?


2) Should the amount of debit entry suggested in above journal entry be added to the closing finished stock?


3)What is the journal entry to be passed in the next year to reverse the provision?


4)Should any disclosures be made in notes to accounts in above scenario?

I request the caclub member who are in manufacturing industry or have done audit of manufacturing industry to please answer my above questions.


Please answer questionwise. Thanks.

For the Last Financial Year 2006 - 2007In our comapny we expensed cenavat poration as purchase cost ( Excie Duty + Education Cess ) but as per Excise records Cenvat Credit Taken .so my query is how do i reconcile cenvat with Accounts & Excise records

We are the manufacturer exporter through our Indian customer CT-1. The cenvat on raw material purchase lying unutilised. Can we purchase raw material through CT-3 (without excise duty)?

What is the procedure/guideline ?

I purchase capital goods.
that invoice have excies duty and vat.
can i avail cenvat credit both excies duty and vat?
if it is yes means ,tell me how?
if it is no means , tell me how?

please clarify the above query.

Hello,
I have few doubts regarding EPCG LICENSE.
1) Can any one tell me what is the use of invalidation letter & Ammendment Sheet in EPCG LICENCE.

2) As the excise duty at present is 14.42% is it possible to make the payment without excise duty (sale against EPCG LICENCE).But the supplier is not accepting for the same. Can any one tell me why like that.

Regards
k.ravi

Central excise paid on the material can it be taken as a service tax refund for payment of service tax?
plz reply as soon as possible.

what is the procdour to registration in excise tellme urgent

why the act includes word central,asin income tax does not have any word,and why itis called an act of 1944?Is their any task on which refernce this to be called?

Dear sir

Please Suggest the fallowing, ED benefit can be taken for structral steel item , as the client has denied to pay for the MS Structural steel directly as that is going to be the raw-material for the final Billing Item (galvanised steel support).

The below to options were explained

Procedure- 1

Step A . MS Strutural Steel will be bought out by us
Step B . fabrication at site
Step C. Galvanisation at outside with due gate pass and permissions
Step D. Galavnised Suport structure with due weighment will be received and based on which the invoicing will be done. In this case , the supporting document for invoicing will be MS STructural Excise Invoice from supplier.Hence, it has been requested to client to pass on the ED component of MS Steel to final item ie., galvanised Structure .


Procedure- 2

Step A . MS Strutural Steel will be bought out by Fabricating agency as per our drawing
Step B . fabrication at their works
Step C. Galvanisation at their works.
Step D. Galavnised Suport structure with due weighment will be received and based on which the invoicing will be done. And supplier will pass on the benefit to us.


The procedure 2 is not feasilble as we have already procured the basic raw material ( MS Steel ) , So please suggest us whether procedure 1 is feasible or not for implementation.

Q.5) As per Rule 11 of CCR,2004 (inserted in FA,2007) Reversal of credit taken on inputs, which
are still lying in the stock, or in process or in final product lying in the stock, when final product
becomes exempt from duty subsequently.,, The amount remained in cenvat credit a/c. after reversing
the said amount shall lapse? IS this True.??