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Trading business in india - nav 2009 sp1

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Hello,

Can anyone assit me in handling of CENVAT & CVD in case of trading business.

As per MS manually, while purchasing, the value is storing in cenvat cr. receivables (trading). and while selling same amount is storing in Cenvat Transfered(Trading) as pass on

How those two accounts needs to consider (either ' Balance sheet' or 'Income statement ')

Same away how CVD to treat if we import those goods from other country for trading business.

Thanks in advance.

Satya
Replies (1)

in a simple way , treat the CENVAT account as a bank pass book , when u purchase goods, cenvat is credited in pass book and available to be used in sales ( no cash withdrawl permitted)

similer way , Edu cess. secondary and higher secondary edu cess 

and exact similer way Value added tax would be treated

 

all such balances as on 31st march would be part of balance sheet in assets side under "deposits"


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