Cost sheet query

Dear Ashutosh,

In a Cost Sheet of a product, taxes like Sales tax, excise duty, custome duty  are included in Cost of Material. If Cenvat & Vat claim availed the Cost of Material should be taken as Net of Cenvat & Vat.

This means above taxes are included in Cost Sheet only if there is no exemptions on Excise, Customs & Sales Tax.

Income Tax Liability is a Financial liablity so it will not be included in Product Cost Sheet.

Girish Kasarekar, MCom, AICWA