SEC 145A

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ca tarun sharma (Querist)
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18 December 2009 hello sir i want to know whether duties, taxes, cess or any amt payable under any law will be added in valuation of closing stock as per sec 145A of IT Act if such duties & taxes r refundable i.e Input Vat, Cenvat etc. since these r not part of our cost hence should not be added in valuation of closing stock

one more ques is whether provision for excise duty is required to be made at end of year in respect of finished goods not removed from factory as per guidance notes of ICAI

if yes what will be its treatment & accounting for such provision
(journal Entries) & if we debit it in trading a/c will it constitute d part of closing stock value as cost of production ?

please explain d above point in detail in respect of AS-2, Guidance Note & Sec 145A of IT Act

Thanx in Advance

CHETAN

CHETAN (Expert)
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19 December 2009
Closing stock valuation shoule be inluding duty & Taxes if Credit not Availing. In case Duty credit availing then closing stock valuation shoule be done excluding duty & Taxes charges.