Input rejection

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2012 Please tell me the detailed procedure to be followed in ER1 and ER6 in case of INPUT rejected and sold under invoice to dealer to reverse CENVAT credit.

We have issued the input from Store to the floor in the INPUT register and already claimed the CENVAT at the time of purchase.

How to record the INPUT (rejected) rcvd back in Store from floor in input register and how to show the sale of such rejected inputs

Naresh Kansala

Naresh Kansala (Expert)
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06 August 2012 Pass the reverse entery for CEVAT credit taken on rejected inputs

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2012 Dear Naresh
i want to know the procedure to be followed in ER1 and ER6. How and where to show such input rejection

Kishor Darole

Kishor Darole (Expert)
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06 August 2012 Hello,

First of all, On material return note, you can receive back the material from Floor to Stores Register. From Stores Register, You can prepare Excise Invoice and pay the duty equivalent to availed duty under Rule 3(4) of Cenvat credit Rule, 2004.

In ER-1, You can add a new line item of this sale with all values. In Cenvat summary, S.No.8 of Row Sr. No.12, You need to show this debit separately. In ER-6, You can show in coloumn 7 of "Removal As such".
Hope this is clear to you.

Regards
Kishor Darole

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2012 Thanks Mr. Kishor Darole for your valuable reply.

i just want to confirm that

First we need to make a Material return Note and show it as recpt in our INPUT register RG 23A

and then show it in the column remove as such for home consumption. Right Sir?

and in ER1 we need to add column of sale and chapter heading no. would be of INPUT only but......
in ER1 on the removal page (in case of online return) there are column of manufactured and removal only. but this input is not manufactured and only rejected. so where to show in qty of INPUT in ER1 removal page. whether to show in qty manufactured only or there is any other option available.

Please suggest