Adjustment Towards Rule

When raw materials purchased are used to manufacture goods that are exempt of duty, the CENVAT credit availed to the extent utilised can be reversed as per Rule 6 of CENVAT credit Rules, 2004.

To record an adjustment towards Rule 6

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 UnitThe Tax Unit selected in the Stat Adjustment Details screen will be displayed here. Press Spacebar to change the Tax Unit..

6. Debit the expense ledger to which the duty amount has been apportioned to.

7. Credit the required duty ledger.

8. Enter the Narration, if required.

9. Press Enter.

The completed adjustment entry is as shown below:

Viewing in Return Forms

The adjustment entry recorded using the flag Adjustment Towards Rule 6  is displayed under Rule 6 Payments,  CENVAT Credit Utilised.

The detailed view of the return form appears as shown below:

Press Enter on Rule 6 Payments to view the CENVAT Credit Utilised report.