When purchasing raw materials (inputs), 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 (Inputs).
To record the adjustment entry
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment.
3. Enter the Type of Duty/Tax, Tax Unit, and Nature of Adjustment in the Stat Adjustment Details screen.
4. Press Enter.
5. Press Enter to accept the Tax Unit.
The Tax Unit selected in the Stat Adjustment Details screen will be displayed here. Press Spacebar to change the Tax Unit.
6. Debit the required duty ledger.
7. Credit the required duty ledger.
8. Enter the Narration, if required.
9. Press Enter.
The completed adjustment entry is as shown below:
10. Press Enter to save.
The adjustment entry recorded using the flag Availment of CENVAT Credit (Inputs) is displayed under Credit on Inputs.
Press Enter on Credit on Inputs to view the Cenvat Credit Availed report.
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