HSN/ SAC Related

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This query is : Resolved

Quick Summary

This discussion addresses how to correctly record purchase invoices that include both the cost of spare parts (classified under HSN) and service charges (classified under SAC) for plant and machinery repairs. The consensus is that it's best practice to bifurcate these costs and maintain separate accounting heads for HSN and SAC to accurately reflect expenses related to machinery service and spare parts.

M L SHARMA

M L SHARMA (Querist)

01 April 2024 Sir,

We received a purchase invoice containing cost of spare parts (HSN- 8471) and cost of service charges (SAC 9987) to get repaired one of our plant & machinery using in business.

While recording this purchase invoice in books of accounts under the Head "Repairs & Maintenance (P&M) A/c ", do we need to mention only SAC-9987
for the entire invoice value? Or do we need to mention SAC and HSN both with separate bifurcation?

Please clarify...

Thanks in advance...

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

01 April 2024 better to maintain separate heads

Message likes : 1 times

M L SHARMA

M L SHARMA (Querist)

02 April 2024 Thank you sir... Your answer is helpful for me, and I think it will help and guide many accounting people who might be in confusion with this issue. Regards..

RAJA P M

RAJA P M (Expert)

02 April 2024 Yes, I agreed with Mr CA Bhavik P Chudasama, It will be account in separate head. Then its helpful for the expenss of service of machinery and it's spare parts.

M L SHARMA

M L SHARMA (Querist)

03 April 2024 Thank you experts...

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