04 September 2010
we have the problem regarding reversal of excise duty and Vat on the rate difference in invoice and purchase order.here is the example:-
we have raised a purchase order in which price includes the packing and forwarding charges..but the supplier raised an invoive in the following manner 7460 kg @ 485.70 = 3623322 + Packing charges = 14500 ---------- Total = 3637822
+ Excise duty = 374695 --------- tOTAL = 4012518
+ vAT = 160500 --------- tOTAL = 4173018
nOW THE QUERY IS WE DONT HAVE TO PAY THE PACKING CHARGES TO THE SUPPLIER.AS IT WAS INCLUDED IN THE PRICE I.E 485.7. AND THE SUPPLIER HAS CHARGE EXCISE DUTY ON THE 3637822 (Product Price + Packing Charges). what should be the treatment of the excise duty and vat. whether we have to rverse the excise duty and vat propotionally or we dont need to reverse the duty i.e can take full credit of the amount....
05 September 2010
Even if you have not made the payment for Packing charges you can take the credit for Excise duty additionally paid on the Packing Charges.
CAclubindia
