31 October 2009
It depends as to in what manner is this packing material used. If it forms as integral part of RM i.e. it is used in packing RM or any intermediate goods then it should be taken in purchase. Also, if your goods cannot be sold without this packing material and it forms an integral part of your finished goods, then this packing material is to be taken as RM. Packing Material should only be taken as indirect expense, if such packing material is optional to effect sale of goods
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