02 September 2010
As per section 145A of Income Tax Act, stock should be valued including excise duty. However, as per Accounting Standard of ICAI (AS-2), inventory of inputs should be valued exclusive of excise duty, if Cenvat credit of input is availed
02 September 2010
As per section 145A of Income Tax Act, stock valuation should be inclusive of any tax, duty, cess or fee actually paid by assessee to bring the goods to the place of its location and condition as on date of valuation, even if such tax or duty is refundable. Thus, duty paid on inputs will have to be added while valuing stock, even if Cenvat credit is availed of such duty paid. In respect of finished stock, excise duty payable should be added to the inventory valuation even if not paid as goods are still lying in the factory. Both opening as well as closing stock should be valued on same basis.
CAclubindia
