Hi
Cenvat credit avilable at the end of year is our assets now if some one treated it as a expenses and debited in P&L account in the end of year and in next year credited the same amount treated as a Income.
I Know that duing this is a wrong treatment but under which Section or Law because the persone duing this is a finance advisor (CA) and how u convense him in such given case, without giving any reference of section it is not possible.
| Originally posted by : Deepak Pandey | ||
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Hi Cenvat credit avilable at the end of year is our assets now if some one treated it as a expenses and debited in P&L account in the end of year and in next year credited the same amount treated as a Income. I Know that duing this is a wrong treatment but under which Section or Law because the persone duing this is a finance advisor (CA) and how u convense him in such given case, without giving any reference of section it is not possible. |
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treat the cenvat credit in same manner as u did for capital asset. reverse the same and recredit.
reason for such transaction - non consumption of capital goods ( tools) in process so capitalized in due course, hence on date of capitalization u can take credit again. ,
CAclubindia
