I HAVE TAKEN CENVAT CREDIT BUT I HAVE NOT MADE ANY CENTVAT CREDIT ENTRY SEPERATELY I.E. SUPPOSE I HAVE PURCHASE MACHINERY FOR RS. 200000/- I HAVE MADE ENTRY FOR THIS IS LIKE THIS
DR. MACHINERY 200000/-
CR. CASH 200000/-
NOW I ADJUST OUTPUT SERVICE WITH THE CENTVAT .
WHAT KINDOF ENTRY SHOULD I MAKE FOR SERVICE TAX SO THERE NO ANY LIABILITY OF SERVICE TAX TO BE SHOWN IN BALANCE SHEET
You should rectify the entry already made and park correct entry and then for output service. Because until you shown cenvat credit in your account how can you get cenvat???
Mr. Singh,
The journal will be like:
CENVAT A/C Dr 50% of the Total Centtral Excise Duties*.
CENVAT Receivable A/C Dr -do-
To Machinery A/c Total Cnetral Excise Duties*.
(It is assumed that you have purchased the Machinery during the F.Y. 2008-09).
* including all Cesses.
Hope this entry should be passed, if it be wrong, welcome the experts opinion/suggestions.
Thanks,
S. Banerjee
CAclubindia
