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Currently on Capital Goods used in Production,Input of Excise is available in 2 years (1/2 in current year and half in next year)
Also Input of Vat is available in some states (like in Delhi in 3 years)

Q1

Purchase Raw Material                  Machines Used In Production

Particulars Amount Particulars Amount
Machines 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

Sales Finished Goods

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

What is Excise Duty Payable?

-a-

Particulars Amount
Output Excise 15000
Less  
Input Cenvat (on Inputs) 5000
Input Cenvat (on Input Services) 4000
Total Input Cenvat 9000
Excise Duty Payable 6000

-ea-

What is Vat Payable?

-a-

Particulars Amount
Output Vat 6750
Less  
Input Vat on Purchases 2250
Input Vat on Capital Goods 1/3 1200
Total Input Vat 3450
VAT Payable 3300

-ea-

Note:-

However,implementation of GST,
Even on Capital Goods,full Input will be available in Current Year

EXAMPLE

Purchase Semi Finished Goods             Machines Used In Production

Particulars Amount Particulars Amount
Purchase 40000 Machines 64000
CGST 12.5% 5000 CGST 12.5% 8000
SGCT 5% 2000 SGCT 5% 3200
Total 47000 Total 75200

Sales Finished Goods

Particulars Amount
SALES 120000
CGST 12.5% 15000
SGCT 5% 6000
Total 141000

-a-

PARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 15000 6000 21000
LESS      
INPUT GST 13000 5200 18200
GST PAYABLE 2000 800 2800

-ea-

 

  1. GST - Goods and Services Tax, India
  2. GST Impact
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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