Skip to Content
0
Former Member
Jan 07, 2008 at 10:09 AM

RETURN OF MATERIAL FROM CONSIGNMENT AGENT

30 Views

Dear Sir,

We are a manufacturer of excisable products.Our material when trandferred to the agents godown imposes on us a liability of excise duty as excise duty liability arises on clearance of excisable product from the factory premises.The following entry has been posted in the books

Cenvat Suspense .................Dr

Excise Duty Payable...............

Now that the material is returned from the agents godown, as per the excise rules this cannot be reversed simply and the return of excisable products has to be shown as purchase of excisable product therby debiting cenvat Credit recievable account.If I go fo PO/migo/miro my problem is solved but I do not want to give any credit to the vendors account as there was no debit to my customers at the time of material transfer.

Regards

Nitin Gupta