Note : Excise is an old Tax, it is now replaced by GST

Learn more about Cenvat in GST here https://www.teachoo.com/4874/1946/Concept-of-Cenvat-on-Capital-Goods-for-Manufacturers/category/GST-Implications-For-Factories/

 

Q6

    Purchase Raw Material              Machines Used In Production      

Particulars Amount   Particulars Amount
Purchase 40000   Machines 64000
Excise 12.5% 5000   Excise 12.5% 8000
Total 45000   Total 72000
Vat 5% 2250   Vat 5% 3600
Total 47250   Total 75600

   Spare Parts of Machines Used In Production 

Particulars Amount
Spare Part 4800
Excise 12.5% 600
Total 5400
Vat 5% 270
Total 5670

   Sales Finished Goods

Particulars Amount
Sales 120000
Excise 15000
Total 135000
Vat 5% 6750
Total 141750

What is Excise Duty Payable?

View Answer

Note:-
If Machines used in Production or Sale,then it is called Capital goods and input of excise is available in 2 years (1/2 every year)

What is Vat Payable?

View Answer

Note:-
If Machines used in Production or Sale,then it is called Capital goods and input of vat is available in 3 years (1/3 every year)
However,rules may be different from state to state

 

Q7

    Purchase Raw Material             Machines Used In Office

Particulars Amount   Particulars Amount
Purchase 40000   Machines 64000
Excise 12.5% 5000   Excise 12.5% 8000
Total 45000   Total 72000
Vat 5% 2250   Vat 5% 3600
Total 47250   Total 75600

   Spare Parts of Machines Used In Office

Particulars Amount
Spare Part 4800
Excise 12.5% 600
Total 5400
Vat 5% 270
Total 5670

   Sales Finished Goods

Particulars Amount
Sales 120000
Excise 15000
Total 135000
Vat 5% 6750
Total 141750

What is Excise Duty Payable?

View Answer

What is Vat Payable?

View Answer

Note:-
No Input of Excise and Vat on Machines Used in Office

  1. Tax Practical
  2. Practical Excise

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 9 years. He also provides Accounts Tax GST Training in Delhi and Pune.