rushi (article) (125 Points)
29 May 2012How Should I Treat Cost of Purchases In Revised Shcedule VI Format?
i.e:Customs Duty Paid On purchases,Excise On Purchases , Transportation And so on
Should I Club These Expenses With Purchases (as was Done Last Year) Or Should They be Seperately Disclosed?
If They should Be Seperately Disclosed, Where Should i Disclose The Same in Revised Schedule VI Format Of P& L?
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 29 May 2012
As per AS-2 Valuation of Inventories, the duties & taxes whihc are subsequently recoverable from the tax authorities shud not be added to the cost of purchases. they shud be shown as Other Assets under the head Current assets.
However you can add transp cost to the cost of inventory.
rushi
(article)
(125 Points)
Replied 29 May 2012
Sir,
Can U Alos Suggest Whether I Should Showcase clearing And Forwarding, Custom Duty ,Transportation Material Testing Charges As Part Of Current Year Purchases Or Showd they Be Showcased Seperately?
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 29 May 2012
As per AS-2 the costs that are attributable for bringing the inventories to their preseent location & condition, other than the taxes & duties that are subsequently recoverable from the taxing authorities are required to be shown as cost whihc is to be added to the inventories.
so if the charges mentind by you are being incurrred for bringing the inventories to their present location are required to be added to the cost of inventories.
CAclubindia
