Currently on Capital Goods used in Production,Input of Excise is available in 2 years (1/2 in current year and half in next year)
Also Input of Vat is available in some states (like in Delhi in 3 years)

Q1

Purchase Raw Material                  Machines Used In Production

Particulars Amount Particulars Amount
Machines 40000 Machines 64000
Excise 12.5% 5000 Excise 12.5% 8000
Total 45000 Total 72000
Vat 5% 2250 Vat 5% 3600
Total 47250 Total 75600

Sales Finished Goods

Particulars Amount
Sales 120000
Excise 15000
Total 135000
Vat 5% 6750
Total 141750

What is Excise Duty Payable?

View Answer

What is Vat Payable?

View Answer

Note:-

However,implementation of GST,
Even on Capital Goods,full Input will be available in Current Year

EXAMPLE

Purchase Semi Finished Goods             Machines Used In Production

Particulars Amount Particulars Amount
Purchase 40000 Machines 64000
CGST 2.5% 1000 CGST 2.5% 1600
SGCT 2.5% 1000 SGCT 2.5% 1600
Total 42000 Total 67200

Sales Finished Goods

Particulars Amount
SALES 120000
CGST 2.5% 3000
SGCT 2.5% 3000
Total 126000
View Answer

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.