Dear All
Can anybody explain me concept of "pay an amount equal to the credit availed" in rule 3(5) of cenvat credit rules,2004.
Pay here means actually payment through PLA or reversal of the input credit taken??
If possible please explain with the help of a JOURNAL ENTRY.
Response awaited.
Thanks
Prateek
Payment pay an equal amount of credit availed on goods when goods are removed as such under rule 3(5) of Cenvat credit rules,2004 because there is no manufacturing activity, and there is no value addition & it is also not considered as trading activity, what inputs are come as well as same has goes.
You have to pay through either cenvat credit or cash(PLA).
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