machine imported

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survesh (Querist)
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18 January 2011 Dear Sir,

A Propritor has purchased (Import)Mould Machine

He Has Received CHA Bills & Remb Expenses Bills

Please Say Me What should be Capitalized.
Commercial Invoice Value 30 Lakhs
Custom Duty 6 Lakhs
Cha Expenses 1 Lakhs

Prop Has received Bill of Entry.Please say should Bill of Entry Value & Invoice Value be same.what are the points to be consider while passing the fixasset entry.
Proforma Invoice is ok or Commercial Invoice is needed.
The Prop pays Vat,Service tax,Income tax can he take any benefit in above taxation

on invoice the machine value is in USD Currency.IS USD to be converted in RS.and account.

Please Guide me.
Entry for Accounts.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 January 2011 You have to capitlaized landed cost of imported machine.

First convert USD into Rs. at the rate on which payment is made.

Then custom duty which can't be availed i.e Basic custom duty and cess on such will be part of cost of machinery.
CHA expenses also will be part of cost of machinery.
Commerical invoice in USD also be needed.
As per you information, Prop is not registered in Excise hence all duty in bill of entry will be part of cost of machinery.

First of all,
ALl entry related to CHA expense, loading unloading, insurance, transport will be debited to Machine under installation, after when machine will be put to use, then it will be debtited to Machine a/c.

survesh

survesh (Querist)
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18 January 2011 What does Landed cost mean.From where i can get the details of Landed cost
You have to capitlaized landed cost of imported machine.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 January 2011 Landed cost of machine includes
1. Basic value of machine
2. Custom duty which can't be availed.
3. CHA expenses
4. Transporataion cost
5. Loading unloading exp
6. Other expense which are requried to put to use the machinery.

survesh

survesh (Querist)
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24 January 2011
hi

Refered to Bill of entry there are some taxes like Custom Duty,CVD & Add duty.

Which tax is

Addition duty on import

is it releated to Excise tax OR custom Tax

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