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?
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?
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.
CAclubindia
