Cenvat credit and pla

This query is : Resolved

rahul (Querist)
Follow

16 June 2012 Dear Sir,
Kindly see my following example:

There is start of plant & there is 'No' opening Cenvat Credit.

Excise duty of inputs purchased- 3,00,000
Excise duty of Sale during month-5,00,000

Is I am saying right that , now we have Cenvat credit of Rs. 2,00,000.

Now, Suppose every month , the equation is such that , excise duty of sales is never greater than (excise duty of purchase + opening credit).
Will one have to pay any excise duty during whole year. as we have cenvat credit for whole year.
If, Yes . why. as we have credit
If,No. why. as I have seen that some pay duty in PLA although they have credit.they do like following, let's Suppose :
opening 50,000
ed of purchases 3,00,000
------------
3,50,000
ed of sales 3,00,000
-----------
50,000

The ed of sales entered above is by substracting ed on sales of whole month say rs. 500000-excise duty paid for month through PLA RS. 2,00,000.
I want to know why they paid rs. 200000 through PLA . how the figure is arrived at?
I think it should be like this.
opening 50,000 + ed purchase 3,00,000 - ed on sales rs. 5,00,000= Rs. 1,50,000 (Net payable)
How this Pla came into and there is still rs. 50,000 credit in my former example.
Kindly give the reply as soon as possible as these concepts are very urgent for me.

Ajay Raghatate

Ajay Raghatate (Expert)
Follow

18 June 2012 Dear Rahul,

Plz explain clearly, what do u want to say.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sreekumar J Pai

Murugan

Suhasini

CA.Gopal Rathi

THOMAS JOHN

Subscribe Now

Cenvat credit and pla

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

Manager- Finance and Compliance

GST CONSULTANCY

CA Final

Senior Executive