Accounting treatment of Basic Custom Duty
This query is : Resolved
10 January 2025
what will be the adjustment of Custom Duty Paid against import of fixed Assets or Recenue nature expenses.
Dhirajlal Rambhia
(Expert)
11 January 2025
When importing fixed assets, the customs duty paid can be capitalized as part of the asset's cost.
For expenses classified as revenue, such as consumables or services, the customs duty paid is generally treated as an expense in the profit and loss account for that period. However, since BCD and social welfare surcharge are not available as credit under GST, they become a cost to the business.
For expenses classified as revenue, such as consumables or services, the customs duty paid is generally treated as an expense in the profit and loss account for that period. However, since BCD and social welfare surcharge are not available as credit under GST, they become a cost to the business.
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