Hello All
Can any one tell me what would be the accounting entries : -
- When Advance License (Now know as Adv Authorisation) and / or DEPB License is issued by Director General of Foreign Trade.
- How the Custome duty is adjuested (A/c Entries) when good are imported on duty free.
Eg. DGFT has sactioned an Advance License of Rs 1,50,000 and DEPB License of Rs 1,20,000 to ABC Ltd
Now ABC Ltd can import Duty Free Goods Upto Rs 1,50,000 against Adv License and Rs. 1,20,000 against DEPB
ABC Ltd has imported the goods worth Rs. 4,00,000 (Excld. CVD Rs 31500 & Custom Duty Rs. 45,000) against Adv License and goods worth Rs. 3,00,000 (Excld. CVD Rs. 22500 & Custom Duty Rs. 37,400)
Now what accounting entries will ABC Ltd will pass in its Book
Thanks in Advance
Srini
CAclubindia
