Treatment of Excise

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Subhasah kumar Gorai (Querist)
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23 July 2009 In financial account how will we treat the excise figure ie.RG register capital goods input& Credit taken.Please give the details with journal entry.

Ashish Shah

Ashish Shah (Expert)
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24 July 2009 If the Excise credit is taken by the client then following entry needs to be passed at the time of booking the purchase of capital goods;

Assets A/c. Dr. 100.00
Excise Receivable Dr. 7.21
Excise receivable (50%) Dr. 7.21
VAT/CST REceivable Dr. 4.00(apx)
To Party Account 118.42

Vishnu Saboo

Vishnu Saboo (Expert)
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24 July 2009 In case of Capital good 50% Credit is avalable in first FY i.e. in FY of purchase the material and the rest 50% has to be availed in Next FY year.
Entry would be same as suggested by Mr. Shah but the 50% for Next FY can not be treated for duty payment in current FY.
in case of Input it is avilable 100% in FY of purchases made.

Subhasah kumar Gorai

Subhasah kumar Gorai (Querist)
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31 July 2009 tanks expert
Subhash kumar gorai
Cellno. 9204162180
(CA (Inter))

Subhasah kumar Gorai

Subhasah kumar Gorai (Querist)
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17 August 2009 Dear Expert,

If I have passed entry related to above transaction :

1) Assets A/c ............Dr. 118.42
To Party A/c 118.42
2) ED Rec. A/c.............Dr 7.21
ED Rec. A/c.............Dr.7.21
Input Vat A/c ..........Dr.4.00
To Assets A/c 18.42
3) PLA (ED)................Dr.
PLA (E.Cess)............Dr.
PLA (S & H E Cess) .....Dr.
To Bank/Cash
4) Party A/c...............Dr.
To Direct Sale A/c
To ED Payable A/c
To E.Cess A/c
To S & H E.Cess A/c
At the time of credit utilised following entry has passed:
ED Payable A/c ..........Dr
E.Cess Payable A/c.......Dr.
S& H E.Cess Payable A.c..Dr.
To ED Rece. A/c
To E.Cess A/c
To S & H E.Cess A/c
To PLA (ED) A/c
To PLA (E.Cess) A/c
To PLA (S & H E.Cess)A/c
Is the above entry has correct or wrong ?

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