plz someone help me ou urgently
I WANT TO KNOW IF SOME ONE HAS IMPORTED GOODS WORTH RS10 LAC & HE HAS PAID CUSTOM DUTY OF RS 100000/- THEN WHAT WOULD BE HIS PURCHASE COST
1) Rs 11 lacs be recognised as purchase cost & entry must be done in books for 11lacs
or
2) Rs 10 lac purchase cost & Rs 1 lac as custom duty paid under the head direct expenses
Purchase price includes all cost including any tax or duty paid...hence ur suggestion 1 is correct ur purchase price would consist of rs. 11 lacs
see if cvd credits can be taken in that customs bill of entry then your purchase cost comes down to that extent as contemplated by AS2
THANKS SIVARAM & HARSHAL
SIVARAM SIR THERE IS NO CVD CREDIT AVAILABLE
my opinion is choice 1
if no cvd credit available then Harshal is correct rs 11 lacs is your purchase cost
11 lakhs
mitesh
11 lacs to be entered in the books
| Originally posted by :Sathyanarayanan. B.Com. CA PCC | ||
| " | As for as booking of entries is concern you can add it with purchase cost or show seperately as customs duty (in case Customs duty credit is not applicable). It depends on need. If management wants to know exactly how much is their cost and customs seperately then they account seperately or else is can be added with purchase. But for the purpose of valuation of closing stock it should be considered as cost of purchase. |
" |
Choice 1 is the right answer.
because if u exclude 100000 duty from the cost of purchase. then u need to bear it from your own pocket.
and if this thing will happen in EXIM then all exporter closed their export houses.
BINA NAMAK KE DAL KESI LAGTI HAI? ENTRY -
ASSET/PURCHASE 1000000
CUSTOMS 100000
TO CASH/BANK 1100000
If your Following Inclusive method of accounting Debit Purchases for 10Lacs and custom duty for 1 lac. in this case both has effect in P&L.
If your following Exclusive method of accounting Debit Purchase for 10 A/c and Debit Custom Duty (Asset) a/c for 1 Lac. In both the cases Keep CENVAT provisions in Mind while Accounting also follow AS-2 Requirements if its inventory or AS 10 if its Capital Goods
agree with sivaram
CAclubindia
