Input credit more than liability
This query is : Resolved
22 May 2009
A manufacturing unit has the liability to deposit Excise & it takes Cenvat credit upon its purchases. Now the situtation is like this that on Purchase of Raw material it is paying excise @8% while on finished goods it is collecting excise @4%(as per excise rates). This way, his Cenvat credit goes on increasing every month & a huge amt as Cenvat credit is appearing as an Asset in his books which although can't be recd from Deptt. What should the co. do so that correct picture be shown in its Final A/cs?
24 May 2009
Show the same in your returns and in the finacnial records indicate by way of note contingent income accounted on cash basis ( confirm with your statutary auditor)
Start manufacturing ( at least the part process ) goods which are liable to excise duty where material costs are low. Alterantively start exporting.
Start manufacturing ( at least the part process ) goods which are liable to excise duty where material costs are low. Alterantively start exporting.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Transporter Declaration form
- Multiple trade mark
- LC charges in relation to Asset purchased should be Capitalised ?
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
