07 October 2008
gentleman y is a partnership firm and exporter of packaged rice and rice powders. they want to start a promotion shceme for distributers at abroad. the promotion schem operates in this way
1 packet of A is packed with 2 packets of B to make a single product to sell @ of 2packets of B
product A is puchased seperatly with out paying tax .
what is the accounting treatment of cost of A whether the transaction liable to Fringe benifit tax ? is the firm able to purchase product A with out paying tax for export.
08 October 2008
yes y is a partnership firm they are exporter for rice and rice powders(in packets) usually they export thier products and the distributer abroad maily in middle east sell the products to supermarkets. suprmarkets to customers. they puchases the rice powders with out paying the tax availing the exporters exemption scheme under the conditoin that the products so purchased would be exported within the specified time.
now they wanted to start a promotion scheme to the ultimate customers.
the promotion scheme is as follows 1 packet of product "x" and 2 packets of product "z" is packed together and sells as a single unit and charges only the rate of 2 packets of product "z".
both the products ,"x" & "z" are thier regular dealing products.
they wanted to know what is the accounting treatment of cost of A ? whether it is sales promotion? if so whether FBT payable ? if so, can purchase the item with out paying tax for export ?
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
CAclubindia
