Accounting of fps scripts on export
This query is : Resolved
12 May 2014
One my client is considering this as a part of inventory. However, I do not agree with the treatment and advised to follow the chain of entries:-
1) FPS scripts receivable a/c Dr
To Duty credit script
( being income recognized)
2) FPS scripts certificates on hand Dr
To FPS scrips receivable
( Being the certificates recd.)
3)Bank/or Imp Duty paid on Machine a/c Dr
To FPS scripts certificates on hand
Please advise whether I am right in my views.
A little detail explanation will be helpful
1) FPS scripts receivable a/c Dr
To Duty credit script
( being income recognized)
2) FPS scripts certificates on hand Dr
To FPS scrips receivable
( Being the certificates recd.)
3)Bank/or Imp Duty paid on Machine a/c Dr
To FPS scripts certificates on hand
Please advise whether I am right in my views.
A little detail explanation will be helpful
13 May 2014
entries suggested by you are correct in my opinion, FPS scripts must be grouped as Loan and advance along with Cenvat account.
though in my opinion this is "good" when it is sold/purchases and tax is applicable
though in my opinion this is "good" when it is sold/purchases and tax is applicable
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