When purchasing raw materials (capital goods), the duty amount can be accounted for as an additional expense on the purchase. Later, there may be a need to account it as CENVAT credit. To adjust the duty amount, a journal voucher has to be recorded with the flag Availment of CENVAT Credit (Capital Goods).
To record the adjustment entry
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment to view the Stat Adjustment Details screen.
o Select Type of Duty/Tax as Excise.
o Select the required Tax Unit.
o Select Nature of Adjustment as Availment of CENVAT Credit (Capital Goods).
o Select Nature of Purchase as Manufacturer.
o Press Enter to save, and return to the voucher.
3. Press Enter.
4. Debit the required ledger and enter the amount.
5. Credit the required ledger and enter the amount.
6. Enter the Narration, if required.
The journal voucher appears as shown below:
7. Press Enter to save.
To view the adjustment recorded in return forms
1. Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > Excise Forms > Form ER 1.
The detailed view of the return form appears as shown below:
2. Click F1: Detailed.
3. Click Credit on Capital Goods to view the Cenvat Credit Availed report.
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