Excise posting issue in Transfer Orders.

samsung

Dear All,

I have a question regarding transfer orders.
NAV 4.0 SP3 IN Version.

When I post a Transfer order with Excise, the Excise Duty payable account is posted.
When I receive the same Transfer Order, the Cenvat Cr. Receivable account is posted.

My question is: Why CCR a/c is posted at receipt?
Why the system is taking the entries like Sales and Purchase respectively?

Kindly help?? ](*,) ](*,) ](*,)

Regards,

Sam Sung.

ssingla

Excise duty is charged on the manufacturing of the goods but the payment is due at the time of removal of goods. The excise laws require that you debit the duty in the books (RG/PLA Books i.e. credit entry in Cenvat Payable account of GL). As cenvat credit is available on purchase , the same way it is available on the stock transfer inward.


From the govt. prespective if the goods are lost in transit etc.. the revenue of thye govt. is not lost therfore .....