DEPB ACCOUNTIN Treatment

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Dheeraj Mishra (Querist)
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28 August 2010 Dear Experts
I am working is a firm we import goods for trading and some times we use depb for custom duty paid. we purchase depb and passed
these journal entry
Purchase a/c dr
vat a/c dr
to creditors a/c

and we do nat pass any entry that show we use DEPB for paid custom duty

please tell me the journal entry in these situations

1 when we purchase DEPB licence
2 when we paid custom duty

please reply

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 August 2010 DEPB Licence a/c Dr
To Creditor's a/c
(Being DEPB purchases accounted)

Customs duty a/c Dr
To DEPB Licence a/c
(Being DEPB used,to pay duty,accounted)

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Dheeraj Mishra

Dheeraj Mishra (Querist)
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28 August 2010 thanks

please tell me we pay more than depb price as vat and file vat return is this correct

Dheeraj Mishra

Dheeraj Mishra (Querist)
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28 August 2010 dear sir
please reply one more question
for example if we purchase DEPB in Rs 100 and custom duty is rs 90 then how we treat 10 rs

please reply

CA SMR

CA SMR (Expert)
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13 September 2010 The balance Rs 10 will remain as debit balance in DEPB License account until it is utilised against customs duty payment of any subsequent import.

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Dheeraj Mishra

Dheeraj Mishra (Querist)
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13 September 2010 thanks for reply
but my question is that the value of depb 90 rs but we pay 100 rs and custom duty is 90 rs then how treat 10 rs. please reply

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