A factory is registered in both Excise and Vat
Hence it gets input of Vat which is adjusted with Output Vat
Also it gets input of Excise and Service tax (called Cenvat) which is adjusted with Output Excise

It is normally of 3 types

Cenvat on Input Services
Cenvat on Inputs(Excise on Goods Used for Production like Raw Material,Consumables and Packing Materials)
Cenvat on Capital Goods

No Input is available of
1.CST on Purchases and Expenses
2.Swachh Bharat Cess on Expense Bills
3.Krishi Kalyan Cess on Expense Bills
4.Excise and Vat on Goods not used in Production like Office Expenses

Since no Input is available of these 3,we do not make their Input accounts


Details of Purchases

Purchase Raw Material

                           A LTD  
Particulars Amount
Purchase 96000
Excise 12.5% 12000
Total 108000
Vat 5% 5400
Total 113400
View Answer

Purchase Raw Material

                          B LTD  
Particulars Amount
Purchase 32000
Excise 12.5% 4000
Total 36000
CST 2% 720
Total 36720
View Answer

Purchase Packing Material

                          C LTD  
Particulars Amount
Purchase 16000
Vat 5% 800
Total 16800
View Answer

Details of Office Expenses

                      D LTD  
Particulars Amount
Stationary 6000
Excise 12.5% 750
Total 6750
Vat 5% 337.5
Total 7087.5
View Answer
                         E LTD  
Particulars Amount
Professional Charges 20000
Service Tax @ 14% 2800
Swachh Bharat Cess @ 0.5% 100
Krishi Kalyan Cess @ 0.5% 100
Total 23000
View Answer

Details of Machines

                          F LTD  
Particulars Amount
Machines(Factory) 140000
Excise 12.5% 17500
Total 157500
Vat 5% 7875
Total 165375
View Answer
                      I LTD  
Particulars Amount
Machines(Office) 35000
Excise 12.5% 4375
Total 39375
Vat 5% 1968.75
Total 41343.75
View Answer

Sales Finished Goods

Particulars Amount
Sales (Bottles) 600000
Excise 12.5% 75000
Total 675000
Vat 5% 33750
Total 708750
View Answer

Sales Scrap

                       Y LTD  
Particulars Amount
Sales 80000
Excise 10000
Total 90000
Vat 5% 4500
Total 94500
View Answer


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What is Vat Payable?

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Suppose Company had a Balance of 20000 in PLA Account
It Deposited 40000 more
Pass Entries

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.