CENVAT Credit

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MUTHURAMAN

MANAGER - ACCOUNTS

41 Points Joined November 2009

We are a 100% EOU Unit. We gave a contract to one party. He is submitting Running bills for the work completion. Based on this Running bill, we are making entries in the financial books. On the other hand, to transfer the required material for the contract, he transfered material from Pune by raising invoice on our company name. In the invoice, Excise duty he has put. Based on the invoice, our Excise incharge has taken credit in RG23. But in the case of financial books, we can not account this invoice since we are accounting only the Running bills received from the party. Please clarify can we take input credit on the invoice received in Excise Register. In this case, there will be difference between the Excise Register and Financial books.

Thanks

Muthuraman

Replies (3)

MUTHURAMAN

MANAGER - ACCOUNTS

41 Points Joined November 2009

Dear All

Please reply to this query.

Thanks

Y Muthuraman

Originally posted by : MUTHURAMAN

Rajesh

Artical

59 Points Joined January 2009

There is nothing to stop you from taking the credit of the invoice received. Because if you have the proper document as per rule 9 of CCR.+ other condition to be fulfilled.

Ashish Ojha

Chartered Accountant

469 Points Joined September 2009

I have understood your case as: You have some materials for which you did not paid till yet, but You received materials.. As u pay as soon as invoice are received, but receiving materials continuously. there is a difference in Excise books and Financial Books...

You can Take Credit As soon as Inputs are Received Rule 4(1)

Ownership is not neccessary Rule 4(3)

Thus U can take credit... For Account books, make an entry for credit purchases as soon as inputs are received and then when u pay bills, cancel it out... In this way ur stock in hand will also tally with daily stock register...