4% sad (special additional duty) refund accounting in tally
This query is : Resolved
09 April 2013
dear all,
i would like to know what is the accounting entries fir SAD 4% refund?
1) In 4% SAD refund, It is clearly mentioned that it should not be pass on to the customer. It means Importer should not consider 4% SAD in the Import cost sheet & as well as Import Purchase account.The same amount should show as SAD receivable at the time of TR6 duty paid.)
2) within 12 months of Tr6 paid, we can file SAD refund. Before SAD refund it is cleared that SAD refund receivable should show at time of Tr6 paid.
3) If actual SAD refund received 90% it is based on sales & balance 10% SAD refund not received then same can be written off as Expense which is allowed.
Someone argued on the subject & informed against the subject as said below-
1) According to him that we can show SAD amount in the Import cost sheet and accordinlgy can show in Import Purchase account.
2) According to him, SAD refund receivable should show at the time actual refund application only ( It means current year SAD refund would be shown in next year as refund application would be applied in between 11 to 12 months)
Entry
Debit SAD refund receivable A/c & Credit Purchase rebate,claim & discount a/c under Purchase group.
I have mentioned that his system is incorrect-
1) We are breaking laws as SAD refund amount should not be pass on to the customer so it should not be Included in the Import cost.
2) Inventory chart will not tally ( Inventory & Ledger & It will require reco at the year end.)
3) Vat & Cst reutrn to be revised as Net shell of Purchase would be changed.
4) If receivable not shown at the time Tr6 duty paid then it would be disallowed to get refund.
please inform me the correct tally entries
i would like to know what is the accounting entries fir SAD 4% refund?
1) In 4% SAD refund, It is clearly mentioned that it should not be pass on to the customer. It means Importer should not consider 4% SAD in the Import cost sheet & as well as Import Purchase account.The same amount should show as SAD receivable at the time of TR6 duty paid.)
2) within 12 months of Tr6 paid, we can file SAD refund. Before SAD refund it is cleared that SAD refund receivable should show at time of Tr6 paid.
3) If actual SAD refund received 90% it is based on sales & balance 10% SAD refund not received then same can be written off as Expense which is allowed.
Someone argued on the subject & informed against the subject as said below-
1) According to him that we can show SAD amount in the Import cost sheet and accordinlgy can show in Import Purchase account.
2) According to him, SAD refund receivable should show at the time actual refund application only ( It means current year SAD refund would be shown in next year as refund application would be applied in between 11 to 12 months)
Entry
Debit SAD refund receivable A/c & Credit Purchase rebate,claim & discount a/c under Purchase group.
I have mentioned that his system is incorrect-
1) We are breaking laws as SAD refund amount should not be pass on to the customer so it should not be Included in the Import cost.
2) Inventory chart will not tally ( Inventory & Ledger & It will require reco at the year end.)
3) Vat & Cst reutrn to be revised as Net shell of Purchase would be changed.
4) If receivable not shown at the time Tr6 duty paid then it would be disallowed to get refund.
please inform me the correct tally entries
10 April 2013
To record the above transaction
1. Create a SAD Refund Receivable Ledger
2. Record the CUSTOM / Excise Purchase voucher (to account purchase & avail Credit)
3. Create Voucher Class for Journal Voucher 4. Record a Journal Voucher (to reverse the credit availed )
EMINENT EXPERT PLEASE GUIDE AUTHOR
1. Create a SAD Refund Receivable Ledger
2. Record the CUSTOM / Excise Purchase voucher (to account purchase & avail Credit)
3. Create Voucher Class for Journal Voucher 4. Record a Journal Voucher (to reverse the credit availed )
EMINENT EXPERT PLEASE GUIDE AUTHOR
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