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Manoj Chawla (Querist)

08 June 2016 Dear Expert,
As we working as Power trading Company, we have purchase a solar power plant with installation to other client. Purchase invoice as below mention component.
SOLAR AMT. =5000000/-
S.TAX 14.5% =725000/-
TOTAL =5725000/-

Here question is that entry what would be either 1 or 2 :

1. Solar plant (as fixed assest) Dr. 5725000/-
Party Cr. 5725000/-

2. Solar Plant (as fixed assest) Dr. 5000000/-
Cenvat Credit(14%) Dr 700000/-
Swach Bharat Cess (0.5%) Dr 25000/-
Party Cr. 5725000/-

If any other please comment and suggestion, Awaiting valuable reply

Thank you

Gokul Sharma

Gokul Sharma (Expert)

08 June 2016 IF CCR IS AVAILABLE THEN 2ND ENTRY IS CORRECT ...IF NOT AVAILABLE THEN ENTRY NO 1

Manoj Chawla

Manoj Chawla (Querist)

08 June 2016 Dear Mr. Gokul Sharma ji

Would you please give your valuable comments on the following points:-

1. We are a Power Trading Co.
2. We are giving services as well as buying and selling electricity
3. Now we are setting up a Solar Power Plant Also in the various states of 100 Kwh only as solar rooftop plant for which we are paying amount as cenvat to our supplier. from these solar plants we will get generate a power and sale that directly to the buyer on whose roof we installed this plant.

now my question is whether we should capitalized the cenvat in the fixed asset or we can use it under common service Cenvat.

Whether the Service tax paid to the party on purchasing or for installation of these solar plant would be count under common service or not ?

Rupesh Jain

Rupesh Jain (Expert)

08 June 2016 you are selling the goods to client, in your books its consider as sales. and for service its is installation service its also your income.

why you are taking under fixed assets. ?

Manoj Chawla

Manoj Chawla (Querist)

09 June 2016 we are not selling solar power plant, we will sale the power which will generate from the solar power plant.

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