Advance or DEPB Licences Entry

A/c entries 6653 views 3 replies

Srinivas

IT Professional

64 Points Joined May 2008

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

Replies (3)

Srinivas

IT Professional

64 Points Joined May 2008

Originally posted by :Srinivas
"	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	"

Srinivas

IT Professional

64 Points Joined May 2008

Hello Friends

Please help me out. Whether any accounting entries is passed for Advance License. if yes then please let me know.

Regards

Srinivas

M.M.SURANA

Director -Taxation

532 Points Joined January 2009

Mr. Srinivasan

As normally we pass the entry of DEPB/Advance licence in the books of account when it has been admitted and issued by JDFT. Either U may adjust with your import or U can sale it.

Debit DEPB/Advance Licence Receivable

Credit Export Incentive.

When U sale it

Debit Party A/c

Credit Receivable A/c

Likewise U can pass your entry when U adjust with custom duty.

Surana, Chennai

9952967237