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Date of purchase of imported machinery

Accounting Entries 1748 views 5 replies

HI

 

My querry is

When a machine (Fixed asset) is imported, which date will be considered as date of purchase and also to enable depreciation calculation

1. Date Machinery arrives in India (16th march 2012)

2. Date Bill of entry is passed ( 5th May 2012)

3. Date goods are removed to the factory ( 3rd june 2012)

4. Date of installation of Machine ( 30th June 2012)

Also exchange rate as on which date would be taken 

Replies (5)

in my opinion..date of purcahse shal be the date on which possession is taken(when it is removed for home consumption)..relevant date for depreciation purpose shall be the date of installation and the exchange rate should be as per agreement..

see the date of exchange rate for determnaintion of custome duty is the date of bill of entry .

for subsequent changes in exchange rate AS 11 is to be followed

dep. allowable from date of installtion on the value which calculated as per AS 10

AS 10 covers all non refunddable expenses till date of installtion.

 

I agreed with Ca pooja, Date of puchase is reconed when the goods mix with massgoods in india.. it should be the date of bill of entry passed. and from dep point of view date of instalation will be taken as per sec 32. that is put to use.

 

Originally posted by : CA Pooja Agarwal

in my opinion..date of purcahse shal be the date on which possession is taken(when it is removed for home consumption)..relevant date for depreciation purpose shall be the date of installation and the exchange rate should be as per agreement..

see the date of exchange rate for determnaintion of custome duty is the date of bill of entry .

for subsequent changes in exchange rate AS 11 is to be followed

YES I ARGEE WITH POOJA ...DATE OF PURCHASE WILL BE THE DATE OF INPASS PREPARED IN DURING THE TIME OF ENTRY OF MACHINE IN FACTORY. & DATE OF DEPRECIATION IS THE DATE OF INSTALLATION IN FACTORY.
 

Hi,

Date of Purchase is : Date of GRN in your factory that is date of goods come in your factory.

 

Bill of entry date is relevant for exchange rate .

 

Depreciation will be allowed when machine will get put to use ,it may be after few months.

 

CA Rajendra Jain

 


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