Treatment of custome duty
This query is : Resolved
29 November 2013
is custome duty part of cost or not?????
mean we will add duty in cost of purchase or not????
mean we will add duty in cost of purchase or not????
29 November 2013
Any expenditure which incurred for making the goods to be able for sale or for making the fixed assets to fit for put to use included in cost of good or assets subject to:
without incurring that expenditure the goods can not be sale / asset can not be put to use.
That expenditure shall not re-imburse in any form resulting prevent or reduction in any expense or generating cash flow to the entity.
Custom, Excise, VAT etc. are indirect taxes and relevant tax laws provides their credit for payment.
In case of Custom and Excise CENVAT / MODVAT is available and in case of VAT Input Tax Rebate is available.
Hence if the custom duty paid by you will be claimed as CENVAT Credit then It will not added in cost else the cost will include said duty.
without incurring that expenditure the goods can not be sale / asset can not be put to use.
That expenditure shall not re-imburse in any form resulting prevent or reduction in any expense or generating cash flow to the entity.
Custom, Excise, VAT etc. are indirect taxes and relevant tax laws provides their credit for payment.
In case of Custom and Excise CENVAT / MODVAT is available and in case of VAT Input Tax Rebate is available.
Hence if the custom duty paid by you will be claimed as CENVAT Credit then It will not added in cost else the cost will include said duty.
29 November 2013
It is the part of cost of material.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Taxation on LTCG for property sold after 24JUL2024
- GST ON DAMAGED GOODS
- Tax liability on income of freelancer
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
