Advance or DEPB Licences Entry

A/c entries 6653 views 3 replies

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)
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
"


 

Hello Friends
 

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

Regards

Srinivas 

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


CCI Pro

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