Free inputs supplied by customer

Pratik Mahajan (student) (83 Points)

14 July 2018  

In our manufacturing process we require a particular part X which is directly supplied by customer's vendor (under bill to ship to model).

 

While selling the finished goods we dont consider the value of X as it is borne by our customer.

What are the implications of this on valuation aspect or any other provision attracted like job work etc.?