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| Particulars | Amount |
| Output ED | 15000 |
| Less | |
| Input ED (Cenvat on Inputs) | 5000 |
| Input ED (Cenvat on Capital Goods 1/2) | 4300 |
| Total Cenvat | 9300 |
| ED Payable | 5700 |
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| Particulars | Amount |
| Output Vat | 6750 |
| Less | |
| Input Vat on Purchases | 2250 |
| Input Vat on Capital Goods 1/3 | 1290 |
| Total input Vat | 3540 |
| Vat Payable | 3210 |
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| Particulars | Amount |
| Output ED | 15000 |
| Less | |
| Input ED (Cenvat on Inputs) | 5000 |
| Input ED (Cenvat on Capital Goods 1/2) | 0 |
| Total Cenvat | 5000 |
| ED Payable | 10000 |
What is Vat Payable?
| Particulars | Amount |
| Output Vat | 6750 |
| Less | |
| Input Vat on Purchases | 2250 |
| Input Vat on Capital Goods 1/3 | 0 |
| Total input Vat | 2250 |
| Vat Payable | 4500 |
Note:-
No Input of Excise and Vat on Machines Used in Office
