if a mfr has been taking CENVAT credit on inputs or Input services, subsequently opts for 100% exemption from excise duty/service tax.

A . he shall be required to pay an amount equivalent to CENVAT credit if any taken by him in respects of inputs-
-lying in stok,
-lying in process,
-contained in final products lying in stock
-contained in taxable services to be provided

on the date when such exemption is opted for/granted

B. after deducting the said amt bal. credit shall lapse.

i m unable to understand practically how it will be done. i mean in respect of every inputs wheter it is consumed in FG/wip etc. it will show bal in receivable a/c & we have to reverse full amt then how can there be balance. i have seen illustration but still i am unable to understand it logically. please someone explain me the logic behind this preferably by passing journal entries.

WAITING URGENLTY FOR YOUR REPLY.

Dear Sir,
Kindly guide us for our new unit(ESTABLISH in 2011) and registered in excise as a manufacturer and paying CE duty From Rs.1/- on branded items and now we have received order for unbranded items.
Can we avail the exemption 1.5 cr on unbranded manufacturing items, because party not paying the duty.
Second q. is what MRP we charge to party because the branded item and unbranded item is same and what rate we show in invoice.
Can we file single ER1 for this.
Kindly guide us.
Thanks & Regards,
Kalpana

wHAT IS THE PROCEDURE OF EXPORT AND IMPORT? WHAT KIND OF DOCUMENTS ARE REQUIRED FOR EXPORT AND IMPORT. WHAT DOCUMENTS ARE PRESCRIBED BY RBI FOR MAKING PAYMENT OF IMPORTS.

What is excise duty pla? what is the main purpose of maintaining excise duty pla a/c.? can the credit of excise duty be availed through pla a/c or there is any other way of availing the same.?

We have closing balance of Rs. 14396/- at the of March 2011 in RG23A Part II. But we have wrongly not C/F that balance in April 2011 and keep filing monthly ER-1 till date, but now we have found our mistake and we want to correct it. There was no option to file a revise return. Now can anybody had solution on this problem? was there any penalty or fine. I want to now all possible solutions.

Proviso to Rule 3(5) provides for levy of CENVAT under CENVAT Credit Rules at 2.5% rebate for every quarter on CENVAT availed on sale of second hand machinery

My query is - say a machine is bought for Rs. 10 Lakhs paying a duty of 10.30% i.e., Rs. 103,000. Now the machinery after being used for one year is sold, for say Rs. 15 Lakhs. Now should the CENVAT duty be Rs. 103000 Less 10% (2.5% * 4) or 10.30% of Rs. 15 Lakhs. Can any one throw light on this issue.

Dear Experts,
I have applied in aces.gov.in for a new registration of dealer. There after premise verification has been completed. But till now I have not got hard copy of R.C. But I have got the No of R.C. by electronically from the web site of ACES.GOV.IN.
Now can I make Invoice without hard copy of R.C? Kindly confirm me with necessary N.F.
Thanks and regards,
R.d

We purchase Welding Machine from A
That time entries was pass
Capital goods (Under Fixed Assets) Dr 100
Excise Duty 10.3% Dr 10.30
Party (A) Cr 110.30

After some time we return welding machine to Party under excise invoice rule 11
My quire is that it is count in sale or less my assets because my accounting software making invoice only inventory items not Capital goods.
I make entries for Return to welding machine
Party A/c Dr 110.3
Sales Accounts with inventory Cr 100
Excise Duty 10.3% Cr 10.30

For less our Assets accounts
Sales account Dr 100
Welding machine A/c Cr 100

It is right or wrong kindly suggests me with full details.

I am preparin 4 my xams for nov 11 which is my 2nd attempt.I refered 2 bangar 4 my previous attempt for idt.I have refered 2 d rtp nd Lookin at the changes and ammendments that hv taken place in march nd april 2011 i request u 2 kindly advice me dat should i continue 2 refer my old bangar or photocopy sum chps from d new bangar....
rply at d earliest.

We are the manufacturer of 'A' finish goods where as the same is also used in 'B' which is another finish goods. So, now my question is if there any scrap & melting loss arising then how we can show the same in ER-6 returns.