Merchant Export Accounting

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DILIP KUMAR BARANWAL (Querist)
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18 June 2026 Dear Team, If we purchase an Assets in Mumbai under merchant export to Bhutan under GST rate @.1% and transport the goods at our cost to Guwahati and further to Thimpu in Bhutan. Then how to capitalise cost of transport upto Guwahati on Assets at Thimpu, Bhutan.
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Dilip Baranwal

Aashok Kumar Sharma online

Aashok Kumar Sharma

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18 June 2026 For assets purchased under the merchant export scheme and ultimately intended for use in Bhutan, all directly attributable transportation costs up to Thimphu should be added to the asset’s cost and capitalized under AS-10/Ind AS 16. The concessional GST rate of 0.1% has no impact on the accounting treatment of capitalization.

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