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
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.
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