I have one client -SSI-his aggregate clearannce upto dec 11 -below 150 lac & after that exceeded 150 lac now a/d to CCR rules since he is taking benefit of EN 8/2003 so he can't avail/take CCR in books on I/Ps lying in stock/FPupto october .now since he had passed all entries bifurcating excise duty element [for all purchases] -now if i reverse the total amt of CCr on raw material upto 150 lacs then whether it violates CCR.For tax purposes i have to adapt a single method i.e. either inclusive/exclusive.Even for sales though there is no ED liability till 150 lac clearancesbut then also after oct i have to separate it since clearences value ecxceeded 150 lacs.now i cant follow both methods i.e. exclusive as well as inclusive.
In above case i think i shd separate ed element & recverse that ed component relating to the period [1/4/11 to dec 11] I just want to know what method shd be followed considering GN issued by ICAI relating to tax audit as well as ST rules .If i reverse that whether it attracts penalty of rule 14 for taking ccr wrongly.
one more point that if i reverse it it's going to increase purchases that means my purchased upto dec 11 follow inclusive method & after that follows exclusive method .for sales how can i follow both methods & one more point abt sales even though I am issuing excise invice from 1/4/11 itself ........
what treatment shd be followed -ssi period & normal assessee
CAclubindia
