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Chetan Sharma (Querist)
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08 January 2014 My client has purchase goods for dealer who has purchase directly from manufacturer and that dealer has mention of my clients purchase bill about passing off MODVat credit directly form manufacturer to my client..

so, can my client take ModVat credit in this case

CA TSR

CA TSR (Expert)
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08 January 2014 Can u explain briefly? Query not understood.

Chetan Sharma

Chetan Sharma (Querist)
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08 January 2014 My client has purchased goods from distributer and that distributer has purchased goods from manufacturer...

Manufacturer has charged excise to distributer but that distributer has passed that excise duty to my client on purchase bill

So, In this case can my client eligible for taking excise credit

Guest

Guest (Expert)

08 January 2014 ya you can claim that excise amount provided the distributor is registered as first/second/third stage dealer.Check the bill it is written on the top and also check the details he furnished about the manufacturer.

Chetan Sharma

Chetan Sharma (Querist)
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08 January 2014 how we have to make accounting of that ModVat which second stage dealer has passon to us through bill

Guest

Guest (Expert)

08 January 2014
Purchase account Dr.
Excise Modvat Recoverable AccountDr.
Excise Education Cess Recoverable Account
Excise H.Edu Cess Recoverable Account
To Creditors Account

CA TSR

CA TSR (Expert)
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08 January 2014 AS per Central excise act read with CENVAT Credit rules, Excise duty levied up to 2nd stage dealer only. Then CENVAT Credit eligible upto 2nd Stage dealer only.

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