Hi cin experts,
According to Partial Cenvat Credit i have a doubt:
Partial CENVAT Credit
Use
In some industries, businesses are only allowed to set off a portion of their input excise duty against output duty. In this case, the remainder of the duty is added to the material value.
Activities
Configure separate tax codes that split the excise and post some as tax and add the rest to the material price.
Day-to-Day Activities
The portion of the excise duty that is added to the material value is displayed in the excise invoice, along with the CENVAT credit. This amount is added to the inventory value when you post the goods receipt.
MY QUESTION IS
How it will add some of the cenvat credit to the material value, if the material value Rs.100/- the the Cenvat Credit is Rs10/-, then
PARTIAL CENVAT CREDIT
Here according the above statement the Cenvat Credit RS.10/- will be split & Rs.5/- add to the material then the material value will be Rs.105/-. Is it correct?
Thanks
Raj