Bill of entry

This query is : Resolved

PANKAJ KANOJIA (Querist)
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25 June 2011 Hi,

Can anyone let me know how to journalise the entry related to puchase from outside the country? Suppose invoice is for 4000 USD but bills of entry shows:
Basic value 225000
BCD 20000
CVD 22500
Edu cess on CVD 4500
S&h Edu on CVD 2250
Add. duty 10000
Exchange rate on the bill of entry 1USD=45 INR.
By what amount purchase should be debited...
225000+20000 or
4000*45+20000.
Please clear my doubt if anyone know...
Thanks

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 Debit purchase account by purchase figures and debit respective tax accounts by the repective amount

Ram Avtar Singh

Ram Avtar Singh (Expert)
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26 June 2011 import purchase ******* Dr
CVD 22500 DR
Edu cess on CVD 4500 Dr
S&h Edu on CVD 2250 DR
Add. duty 10000 Dr

party account Cr******
custom duty Cr******
Shipping comp. Cr*******
CHA CR******
CHA Reimbursement CR******

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 In this case CUSTOM DUTY HAS BEEN PAID
It should be like this

Purchases at Exchange Rate Dr ...
Costume Duty Dr. ...
Other Taxes Dr.....
Bank or L/c Cr.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 At the time of Sales Dr. Party and Credit Sales or if tax credit is available then that very particular account

PANKAJ KANOJIA

PANKAJ KANOJIA (Querist)
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26 June 2011 Thanks to all of you but Agarwal sir still there is a confusion.I need to know the exact amount of purchase whether it is
225000+20000=245000 or
4000*45+20000=200000.
Whether we should book the purchase by $4000 multiply the $ rate on the bill of entry or the amount which is calculated by the custom officer for calculating the duties...

Thanks

Kumar

Kumar (Expert)
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26 June 2011
4000 USD multiply the $ rate on the bill of entry.
Rs. 2.25 lakhs is only assesable value under Customs Act and not relevant for accounting the purchases.
Hence, among the two options Rs. 200,000 is correct.

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PANKAJ KANOJIA

PANKAJ KANOJIA (Querist)
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26 June 2011 Yes Rajesh you are right, I got it....

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 I agree with other experts