Accounting of Imports

Dear friend

import purchase is subject to Basic Import duty ( including additional custom duty U/s 3(1) of custom Act as the case may be)

no credit is allowed on basic custom duty but credit is allowed in respect of additional custom duty which is levied equal to excise duty had  such imported goods bought within India. effective rate is 8.24% (may be differ depending on the nature of goods).

entries should be

Purchases A/c( including Basic custom duty) .........................................Dr.

Cenvate Credit Receivable ( on additional custom duty) .......................Dr.

              To Bank A/c / Creditor A/c

But Dear, I've seen to take credit of basic duty also in manf. unit.

There is written BCD, CTD like. only cess paid not on add. duty not claimed.