Excise treatment

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SHREYANSH B SHAH (Querist)

22 September 2011 Hi Expert can u give clarity regarding following doubt:

AS 2 and Guidance not says that Excise on manufacturing should be treated as manufacturing Expense and also it Provision for non- removed Goods made:

My question is that how can be it treated as an expense when you are passing the burden of Excise to the Customer of that company.?

CA Sumat Singhal

CA Sumat Singhal (Expert)

23 September 2011 Sir, read the para 18-20 of the Guidance Note on Accounting Treatment for Excise Duty with AS 2 valuation of Inventory where former says to create provision mandatory for excise duty liability and later to include such duty to value of inventory.
So where is the Doubt.?
Regards,
CS Sumat Singhal

SHREYANSH B SHAH

SHREYANSH B SHAH (Querist)

24 September 2011 Bt my question is where Excise is nt at al our expense as we are passing the burden of the same to the consumer ... How can be it is part ofExpense as sugggested by Guidence Note of the ICAI...?

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