can anyone tell me whether TCS increases the cost of the asset
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Quick Summary
This discussion clarifies that Tax Collected at Source (TCS) does not increase the cost of an asset; it's treated as a separate, refundable current asset. It also delves into inventory valuation, explaining that raw materials should be valued at the lower of cost or replacement cost, especially when the net realisable value of finished goods is lower than the original cost. The query also seeks clarification on the definition of replacement cost in this context.
As per Accounting standard 2 valuation of inventories, RAW MATERIAL should be valued at cost ( if finished good sir above the selling price of this) otherwise replacement cost
for an example I purchased certain raw materials for manufacturing at the cost Rs . 50,000 ,at the processing of my manufacturing I need additional raw material so I am purchasing additional raw material on the date raw material prices 40,000..... finally my net realisable value of my finished goods is rupees 3,0000
in this case in my books of accounts can I value the inventory lower of cost rupees 30000 it is correct or not??
please guide me
Special query: Replacement cost means current market price but when we require this replacement cost for example if any additional raw materials needed we are going to purchase that's it or not??
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