Finology
Finology

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Inventory Valuation for Import Purchase

This query is : Resolved 

21 January 2022 Imported of Machine at Rs.115000 from China and paid custom duty Rs. 15000 (As per custom Tariff) and till 31st March,2021 if we have this machine in closing stock, while doing valuation whether we shall include the custom duty or not, I have done the valuation as under ;
Cost of goods Purchase
115000 = Basic Cost
20000 = Duty Cost
6000 = Insurance & Freight (CIF)
5000 = CHA & Other charges
146000 = Total Cost

We have charged the Custom Duty, Insurance and Freight, CHS and other Import Charges to P&L already, So this all cost would be added to Inventory or not, and if yes then which cost shall be added to Machine Value at year end?

Please advice.

22 January 2022 Reverse p and l charge and add all costs to the inventory and machine value.

24 January 2022 Sir,

This is our business to import machine, so machine is our inventory. So at time of import we are charging this expense to P&L. But in Inventory valuation, is it require to add custom duty, Freight and Insurance in basic cost value of machines?

Please guide.

24 January 2022 Such expenses has to be capitalised to the cost of the machinery.

06 April 2022 Imported materials (Our regular trading products) at Rs.115000 from China and paid custom duty Rs. 15000 (As per custom Tariff) and till 31st March,2021 if we have this machine in closing stock, while doing valuation whether we shall include the custom duty or not, I have done the valuation as under ; Cost of goods Purchase 115000 = Basic Cost 20000 = Duty Cost 6000 = Insurance & Freight (CIF) 5000 = CHA & Other charges 146000 = Total Cost We have charged the Custom Duty, Insurance and Freight, CHS and other Import Charges to P&L already, So this all cost would be added to Inventory or not, and if yes then which cost shall be added to material Value at year end? Please advice.

07 April 2022 Yes, add all the above costs to inventory.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


Similar Resolved Queries


loading


Unanswered Queries


Follow taxation Exam20 Book Book


Answer Query