Interest paid on Custom duty
This query is : Resolved
10 June 2010
whether interest paid on custom duty on violation under EPCG scheme is to be capitalised or its a revenue expenditure? Please reply asap
RAMESH KUMAR VERMA
(Expert)
28 June 2010
Dear Nishila,
What is Revenue expenditure?
Ans:- Actual payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document. A Revenue expenditure is cash used in payment for goods and services consumed in a short period. A capital expenditure is cash used in purchase of fixed assets that last one year or more.
What is Capital expenditure?
Ans: - Payment made, or to be made, for the acquisition of a long-term asset, such as land, a house or machinery. In accounting, this would be recorded in the long-term asset account.
EPCGAUTHORISATION:-
As per chapter-5, of Hand book of Procedure vol-1 (2009-2014) paragraph 2 an application for grant of EPCG authorization may be made to RA concerned in ANF-5A along with documents prescribed therein in .
As per Para 5.3.3(1) an applicant may also apply for import of spares, tools, spare refractories and catalysts are required for installation and maintenance of capital goods.
What is Revenue expenditure?
Ans:- Actual payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document. A Revenue expenditure is cash used in payment for goods and services consumed in a short period. A capital expenditure is cash used in purchase of fixed assets that last one year or more.
What is Capital expenditure?
Ans: - Payment made, or to be made, for the acquisition of a long-term asset, such as land, a house or machinery. In accounting, this would be recorded in the long-term asset account.
EPCGAUTHORISATION:-
As per chapter-5, of Hand book of Procedure vol-1 (2009-2014) paragraph 2 an application for grant of EPCG authorization may be made to RA concerned in ANF-5A along with documents prescribed therein in .
As per Para 5.3.3(1) an applicant may also apply for import of spares, tools, spare refractories and catalysts are required for installation and maintenance of capital goods.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Ito add credit side of bank
- GSTR9 Annual Return
- Employee secondment
- Form 144 TDS Return Validation error
- GST ITC as per notification 12/2023- central tax
- Capital gain on commercial property and investment in residential property
- Rent agreement of House of deceased person
- Applicability of tax on invoice
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
