We are dealing in trading of imported Non-coking coal. Due to nature of Item we have difference in physical and actual stock of goods. Now we want to write off differential stock in books.
In non-coking coal GST charge @ 5 % and Compensation cess 400/- per MT.
My query is we need to reverse ITC and Cess in case of normal loss ?
23 April 2022
Instead of writing off the difference in accounting records , shortage in quantity, you should value your closing stock on the basis of physical stock and pass stock journal for variation in quantity.
CAclubindia
