Menu
Capive consumption
What will be the excise treatment in case an exciseable final product is captively consumed for project activities(as Fixed assets)? Will it be valued at 110% and the 50% duty credit be taken in first year? Please clarify. How will the value of such goods be accounted for in book of accounts?
Replies (2)
You need to pay the excise at 110% of cogs computed as per cas-4.
However you must consume 100% of ypur production than only you can pay duty as said above under rule 8.
You can avail 100% credit of duty in year of payment itself.
Please clarify whether i am correct or not, in the case pointed out:
1. company will value the production at 110% of cogs.
2. company will book sales of same:
Customer(Company) a/c Dr 123.60
To Sales 110
To Excise Duty Recovered (110*12.36%)
3. on the other side company will book purchase of project related goods:
Project a/c dr 110
RG 23C PartII dr 6.8
Cenvat Hold a/c dr 6.8
TO Vendor(Company) 123.60
Is this the correct accounting treatment?
Thank you in advance.
Recent Threads
- TAN for Multiple States
- Delivery Challan serial number Issue and return ru
- After filing form 71 For TDS mismatch
- UNCLAIMED TDS REFUND QUERY
- Rcm payable which head
- Query of GST
- Long Term Capitalgains on sale of residential prop
- How Salaried Individuals Can Reduce Capital Gains
- NSTPI registration
- GST PAID IN DELHI
Related Threads
CAclubindia
