accounting standard 10

kindly explain the fact while valuating fixed assets why vat should be added if that manufacturer also engages himself in selling its finished product. If situation pertains to old tax policy
Replies (4)
As per my knowledge, irrespective of tax policy ultimate cost of any fixed asset should be the cost plus exp which incurred by manufacturer while acquiring an asset. also exp such as vat cannot be set off easily and many times fully for that matters vat is added in actual cost of asset considering vat as another exp to asset and then dep will charge on it.but question's information is incomplete on part of type of asset based on that answer will definitely changed.
Sorry the question must be in an incomplete mode as the asset is a plant & machinery useful directly/ Indirectly in support of manufacture of dutifiable product. then what is your suggestion in this case as per treatment in as-10
as asset in question is plant and machinery thats why we can take full set off of vat which is paid on fixed asset while purchasing it so it is advisable not to add vat in cost of fixed asset.

One query please if in such case suppose we are setting off the input tax from Vat/Excise/GST liability for that financial year what ever it comes out, then we must not be eligible to avail depriciation in that financial year.................?

That means the depreciation can be entitled on an annual basis from the next financial year as per it's existence in support of manufacture.......................is that so........................?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details