Vishwa2
Manager-finance
Kvpv
Service

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Whether excise duty paid on purchases to be accounted under seperate ledger account as ED paid on Purchases.
From India , Mumbai
It depends on the purpose. If you are taking cenvat credit on duty,you wil have to account it separately. rgds vishwanaht
From India , Bangalore
Accounting treatment of Excise Duty paid
1. ED Paid on Purchase of Material. Is this part of purchase or it should be accounted in current assets as Cenvat Receivable.
2. Cenvat Received how will be the treatment after 1 above.
VPV

From India , Mumbai
Assuming that you are going to avail excise duty credit on purchases, the cenvat credit should be booked under cenvat received account. It should be current asset and will not form part of purchase cost.
For example. You have made a purchase of Rs. 100 and Ex. duty is Rs.16. The total amount is Rs.116.
The purchase entry should be
Dr. Purchase Account Rs.100
Dr. Centvat received Rs 16
Cr Party's account Rs 116
You can adjust the total cenvat received account can be deducted from cenvat payable at the end of the month. following accounting entry may be made for the same.
Dr. Cenvat payable account (total debits during the period)
Cr. Cenvat received account
Assume total cenvat received account of purchases is Rs. 2500 during a month, and your liablity for cenvat payout is Rs. 6000, you can deduct Rs.2500 out of liability and you can remit Rs.3500 by PLA.
Hope this is clear. if it is not clear, you can call me on 9845358280
Rgds
Vishwanath

From India , Bangalore
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