Regarding Invoice of Custom Duty, Import Duty & Other Charges

Hi Sandip,

For accounting the customs and import-related expenses, here’s a suggested way to classify and record the entries in your books:

1st Invoice: (Custom Duty, Freight, Stamp Duty, Registration Fee)

Ledger/Group Suggestions:

Note:

• Customs duty and freight are part of the landed cost of imported goods, so these are usually added to the value of the inventory for cost calculation.

• If you follow absorption costing or IFRS/AS per your accounting policy, you may capitalize these costs as part of the inventory cost rather than expense immediately.

2nd Invoice: (Agency Charges, Documentation, Scanning, Dock, Loading, Transportation, etc.)

Common SAC Code: 996712 (Support services)

Important points:

• Most of these second-invoice charges are service expenses related to import handling and clearance; typically, they are expensed or included in the inventory cost based on your accounting policy.

• If you capitalize the total import cost, include both invoices' amounts into the value of the imported inventory.

• If expensed, record these under indirect expenses or admin expenses as per your chart of accounts.

Example Entry (Capitalizing import cost):

When you receive the goods and invoices:

If separately recorded:

If you want, I can help draft the detailed accounting entries based on your ERP or accounting software.