Inclusion of ex.duty in clg stock

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priyankabagga (Querist)
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04 November 2012 is there any evasion being done in excise or incme tax if excise duty has been included in closing stock and equal provision created on liablities side, also in trading and profit and loss a/c closing stock is exclusive of excise duty....i.e. no effect in p/l as such

Amol S Joglekar

Amol S Joglekar (Expert)
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04 November 2012 AS 2 deals with the valuation of inventory. It is imaterial if you are foloowing the same... whether you have included or excluded excise in inventory valuation... Follow AS 2

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priyankabagga

priyankabagga (Querist)
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04 November 2012 pls clarify...

Amol S Joglekar

Amol S Joglekar (Expert)
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04 November 2012 If you are following the practice of excluding or including excise duty consistently... you can do so in subsequent years as well. Frequent change in valuation of inventory is not permitted.

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