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Excise duty can be added in inventory cost in case of 23d


24 September 2015 Goods are imported by the trader worth Rs.1000 and CVD charged is 400.
On sale of goods dealer will pass on CVD credit to customer .

Now what will be the valid accounting entry

Inventory 1000
CVD credit 400
To vendor 1000
To duty payable 400

sale:

Customer 2000
To sales 1600
To duty transfer account (CVD)400

Can it be possible to include CVD duty in inventory cost and in revenue value.

Inventory 1400
to vendor 1000
To duty payable 400

Sales

Customer 2000
To revenue 2000

Second case is possible or not?

24 September 2015 You can pass the CVD and SAD to your customer. You can value addition of the price of the goods but duty will be passes same.

24 September 2015 Is there any governing law for the addition of excise duty in price of goods and to be book in revenue as well?






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