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This query is : Resolved

Reena C (Querist)

12 December 2011 If we are purchase X qty by paid duty Rs.in manufacturing purpose (Final product)
the same Rs. 100 we have taken duty credit in the previos month, the after two months we are selling the same item to other manufacture with out any manufacture effect how can we treat in accounting, somebody told be we should reverse the 100 rs. in Annexure 10, then we are collecting the same duty amount from other party to be paid (collected amt. as equal to what we have given at the time of purchse or more) we should pay to central excise.
is it correct or any other procedure are there can u pls. help for this

Thanking You
Awaithing your immediate reply.

Reena

NILESHKUMAR

NILESHKUMAR (Expert)

13 December 2011 in accoiting treatment it is treated as trading as no other process is carried out by you and you are selling the goods as it is. in such circumstances sub rule 5 of rule 4 of CCR 2004 will be applicable , whatever credit availed has to be reversed under cover ofd invocie issued under rule 8 and rule 11 of CER 2002.

make seperate entry in er 1 for the same.

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