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Fixed assets purchase with vat, custom & freigt

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murali nellore

accountant

48 Points Posted on 07 July 2014

Hi Sir,

please give a solution for below transaction.

company has purchase fixed assets with VAT, Customs Duty & Frieght charges, so please guide me how to account this in books, my doubt is we have to show the Customs Duty & frieght charges in P&L or Total Invoice value has take it as a fixed assets?

Murali

accountant

Replies (1)

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 07 July 2014

if cenvat credit and input credit of vat to be availed then only value of machinery to be taken as book value otherwise whole of invoice value will taken as book value of machinery.