Bank charges amount included in invoice of import

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2013 whether Bank Charges amount included in Import Invoice will be shown as separate or will be combined as Material Purchased Charges as per AS-2 (Inventory Valuation) in Books of Account Pls Tell me..............

Sambu Suresh

Sambu Suresh (Expert)
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10 December 2013 Bank charges are in the nature of Finance cost. The charges like LC are charges against the security of the transaction or document. These are generally in the nature of Administrative expenses.

Cost Accounting Standard 6 also suggest to not to add the bank charges as part of Raw material cost.