Journal Entries For CENVAT and Excise Duty payment

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  1. I have paid excise duty of Rs 100 on purchase.Excise duty on goods sold is Rs 80.
    What are the journals should I pass for CENVAT adjustment.

    If the case reverses,i.e., Duty on Sale Rs 100 and duty on purchase is Rs 80 then what are the journals should I pass in my book ?

    Please guide someone.
     
  2. ZED

    ZED Well-Known Member

    Goods XX
    Cenvat credit receivable 80
    To supplier (XX+80)

    Excise Duty 100
    To provision for unpaid excise duty 100
    (When ED is levied (on MFG))

    When adjustment is to be made

    Provision for unpaid excise duty 100
    TO Cenvat Credit receivable 80
    To PLA [Excess amount of ED paid, if any)] 20

    [In other case there will be no PLA, you will have excess Cenvat credit of 20]
     
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