Tally entry

Under duties and taxes

It shud be shown under ' Loans & Advances' on the asset side as it is an adjustable against any excise liability arising.

when booking a purchase invoice entry wud be as follows:

Purchase Dr   xxx

VAT   Dr  xxx

Cenvat Credit receivable Dr xxx

to-  supplier.

while paying excise duty first the balance appearing in the above Cenvat Credit Account shud be utilized as follows:

Escise Duty Dr  xx

To- Cenvat Credit Receivable

To- Bank/Cash

Under Duties and Taxes