Capitalisation of import cost to stock item

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 Hi

We have imported certain electronic goods for sale in India. We have paid Custom Duty, Import Duty, Freight & Other charges towards Import of Goods.

We are a Partnership Firm.

Is it necessary to Capitalise the Import Cost to the Stock Item OR it can be shown separately under the Direct Expenses in Trading Account.

Is there any rule/law to Capitalise these import cost

CA Kishore Tallam

CA Kishore Tallam (Expert)
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20 April 2012 See AS 2 Inventories which says amounts which are attributable to the inventories has to be included in the cost.
AS 2 will be applicable to u if u r sujected to tax audit.