CENTVAT

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???

First pass the following rectification entry....

CENVAT receivable Capital Goods   DR.

                   To Machinery

Then Pass an adjustment entry....

Service Tax Payable   Dr..

              TO CENVAT receivable Capital Goods

Amt will be credit actually taken. Balance will be shown as CENVAT Credit receivable.

>>Vipul Garg  

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