Wrongly credit taken of education cess

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Lalit Sangani

M.Com. Asst. Manager Account

736 Points Joined April 2012

Hello Dear,

I have wrongly credit taken Rs. 12000/- of Education cess Hr. education cess on import material dated 15/10/2013, and Utilised that amount in oct month.

I have found this mistake on 7/4/14, Can I reversed this amount from available of basic cenvat amount and how many days will be calculated for interest.

Thnx

Replies (2)

Rakshit

practising

338 Points Joined November 2011

1.Whether credit in basic account (12%) was always available more than Rs.12000/-till April,2014 2.If yes, you can debit without any interest And intimate the dept. to avoid penalty. 3. If there was balance below the amount in question and continued above 30 days, then you may face great problem because Rule 8(3A) of Central Excise Rules,2002 provides that in such case, party has to deposit excise duty only in cash due on all goods till the dae of short payment good alongwith interest.

Raksh*t

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Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir, In this regard you can reverse the same duty which are taken excess with interest and interest will be come out in the force when you taken wrongly such duty. It means that time you passed the wrong entry in the book. Further you also can be passed such duty through Cenvat account or PLA account. Either concept chose by you.