Import Purchase

This query is : Resolved

Mukesh Kumar (Querist)
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14 April 2010 Hi everyone
Hope you all are doing very well. I want to ask that If we purchase items from outside India. Then we pay payment to our supplier, payment for freight , payment for custom duty, payment for clearing and etc... After that we do our sale in India [ Local & central ]. So I want to know that what items will be include in purchase figure.
[ payment + custom duty + freight + clearing charges + etc.. ]

Please reply me I am waiting for your valuable reply...

Thanks in advance
Mukesh Kumar
Delhi

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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16 April 2010 Custom duty will be the part of purchases. Regarding accounting of freight, clearing charges, I think these expenses should be accounted for as direct expenses.