Cost of asset when it imports form us

This query is : Resolved

Nagaraju (Querist)
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29 July 2011 Hi

I have imported machines from US the total cost of the asset includes freight insurance and forwarding is Rs.5519146/- were as customs department has charged on AV of Rs. 4331056/- for the purpose of depreciation what should be my cost is it the total cost incurred by me or the value decided by customs on which i have paid customs & duty.please help me on this issue.

Preety Parik

Preety Parik (Expert)
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29 July 2011
1. The total Cost of Acquisition of Plant and Machinery to you is Rs.55,19,146
2. Amount paid by you is your purchase cost of machinery.
3. Depreciation will be claimed on the purchase cost i.e Rs.55,19,146
4. The Assessable Value determined by customs is only the purpose of payment of custom duty. Even the custom duty paid will be added to cost of machinery

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 July 2011 yes. customs valuation only for the purpose of calculate and pay the customs duty. you need to add the purchase value and expenses up to reach the start of machinery. In case customs duty is Cenvatable then you no need to add to the cost of machinery. if not Cenvatable you can add customs to the cost of machinery

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