CA LOKESH (Chartered Accountant) (63 Points)
16 January 2009Dear all
Please let me know, what is the accounting treatment for Advance License taken under the customs laws and also clarifiy me how to account the DEPB Income .???????????
Zainul Tawawalla
(Audit )
(101 Points)
Replied 19 January 2009
Advance license shall be accounted as current asset. As & when the imported goods are cleared against that license, such account is credited with the corresponding debit to purchase account. DEPB is the entitlement of certain quantity if goods which can be imported duty free which we receive on account of exports made by the company. DEPB as such should not be accounted as the value of goods automatically gets reduced when imports are made.
Hope it is clear.
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 03 April 2009
| Message : Dear Sadhana In my opinion,when U maintain your account on accurual basis, and U make the claim of DEPB to authority and they admit your claim & issue advance licence U shoud Debit DEPB Receivable A/c ( under Group Loans & Advances ) and Credit Export Incentive under DEPB ( under Indirect Income Group).If it is not adimtted by concern authority U need not to pass any entry, since it is not be your income unless it is admitted by authority. Why I am saying tomorrow due to some technical reasons, your claimt may be rejected. And in case if U follow Cash System U may take in account on the time of Sale of licence or utilisation. for further claification U may write <mahendra1956 @ yahoo.co.in> Hope it may clear U. Thanks M.M.Surana |
| Sent to : Sadhana Srikanth on 31 January 2009 |
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