Hi all,
Could anyone explain a simple example of a sale and where excise duty is charged. I want to know whether it should be included in Cost or not. Also I have seen in some Annual reports of companies in P&L that Sales Rs 100 - Excise Duty 10 = Rs 90 as Net sales.
Could someone explain what that means. I am really confused with that.
Thanks Palash... But i wanted more explanation in detail... A simple example would be great...
For Seller Point of View :-
Turnover will count Sales Less Excise Duty because exicse duty is not a prt of sales.
100-10 = 90
For Buyer Point of View :-
Purhcase will be 100 - if we not taking input (90+10=100)
Purchase will be 90 - if we taking Input as 10 will be advance recoverable cash in kind which will be adjusted from payable account.
CAclubindia
