expenses incurred before production starts
This query is : Resolved
06 January 2015
Hi....Plz clarify...
A company has started its manufacturing from April 2014 but there are expenses incurred prior to April 2014. They have also procured raw material for trial production before April 2014.
Will Raw material procured for trial production can be capitalized ?
While purchasing Raw material for trial production they have also paid excise duty and VAT in the raw material prior to April 2014.
Can a entity adjust this Excise duty Input and VAT input with duty payable that is incurred after April 2014 ?
If it can be capitalized, what is the procedure for the same and how it can be done....
A company has started its manufacturing from April 2014 but there are expenses incurred prior to April 2014. They have also procured raw material for trial production before April 2014.
Will Raw material procured for trial production can be capitalized ?
While purchasing Raw material for trial production they have also paid excise duty and VAT in the raw material prior to April 2014.
Can a entity adjust this Excise duty Input and VAT input with duty payable that is incurred after April 2014 ?
If it can be capitalized, what is the procedure for the same and how it can be done....
06 January 2015
Net of the trail production expenses/income can be capitalized. Income on sale of trial production has to be adjusted against trial production expenses.
Cenvat credit can be claimed on trial production sales.
Cenvat credit can be claimed on trial production sales.
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