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Purchase from fsd & ssd

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2015 Dear experts,

If a manufacturing co has purchased from FSD/SSD with excise. then for CENVAT how will it pass the entry in tally.

e.g. Purchase value - 10000
VAT @5% - 500
total - 10500

now since supplier is FSD so it pass the excise duty also for say Rs. 1200., then question is that how journal entry will be passed for Rs. 1200 CENVAT. here see as below:-

Local purchase Dr 10000
VAT Input Dr. 500
To supplier 10500

then how will be treatment for 1200 for cenvat through journal entry. if we show this as
Excise duty Dr. 1200
then purchase amount have to be lessed by 1200. is it correct way. Please give your own valuable suggestion.

CA Nimesh Maheshwari

CA Nimesh Maheshwari (Expert)
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14 April 2015 Yes, you will have to debit the cenvat credit receivable on Input / Capital goods account, Edu Cess and SHE Cess credit receivable accounts (if applicable) and reduce the cost of purchases.

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