Tratment of custom duty paid

This query is : Resolved

CS ,CMA Shambhu Kr. jha (Querist)
Follow

08 September 2011
Dear sir/Madam
i want to know that what will be accounting entries for custom duty paid on importing of a machinery .
Either it need to be capitalized .or it will reflect in profit and loss account .

As per my understanding whatever credit we will get for cvd is our asset and should shown in asset side of balance sheet .

And actual amount paid for custom duty need to be capitalised . But again a question struck in my mind . After capitalising custom duty we will calculate depreciation on custom duty also . It will be just like write off of depreciation .
Either it will be allowable under Income Tax Act .

with thanks

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

08 September 2011 sir,

please open the below mentioned link:

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

08 September 2011 https://www.caclubindia.com/share_files/export-import-accounting-entries-37679.asp

for any query, ask this club eminent expert will assist you in the said matter.

thanks,

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