Excise duty should be part of purchase cost or not?

This query is : Resolved

Martin (Querist)
Follow

20 March 2013 Excise Duty should be part of purchase cost or not?

1. Should I add excise duty in purchase cost and purhcase account should be debited with (goods value + excise duty)

OR

Should I Debit purchase account with purhcase value and Excise Duty Account with excise Duty Value?

2. In what conditions, Should I keep seperate and in what conditions, should I add excise duty value in purchase account?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

20 March 2013 if Excise duty on purchases is cenvatable and that can be adjusted your output duties, then need to be accounted separately, not to added to purchase account

if the excise duty not cenvatable and cannot adjust with output duties, then you can add to the purchase cost

Martin

Martin (Querist)
Follow

21 March 2013 Thanks a lot for you reply.

I am clear now. Thanks.

Upgrade to CAclubindia Pro. Subscribe Now!