Depb/license entries

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Prem Bhardwaj (Querist)
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10 December 2013 Hello Experts,
we are importers and traders....I want to know, we are using DEPB/License to Pay our duty during import....So i want to know how to pass DEPB entries in Book. Because When we purchasing DEPB their is Vat on it..But it is not our stock.it is our current assents. But if we want to take credit of vat we have to show it under purchase...and if we want to sale it sometime we have to put it to under sales..generally it is not our stock.
if we want to put it on our under stock and during import if we want to use it then how to pass entries, so it will disappear or consumed?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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13 December 2013 DEPB Receivable (Current Asset)

To Raw Material consumption account. (P&L A/c.)

( On Basis of export done during the period)

DEPB Received A/c.(Current Asset)

To DEPB Receivable

(On receipt of license from DGFT)

Raw Material consumption account

To DEPB Received account

(On Utilisation of DEPB Credit).

login for more info:

http://220.227.161.86/11109p635-637.pdf

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