Fixed assets purchase with vat, custom & freigt

277 views 1 replies

murali nellore

accountant

64 Points Joined March 2010

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

3710 Points Joined September 2007

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.