13 June 2012
Dear all, we have imported Goods worth USD 20000. Exchange rate on Bill of entry is Rs 50 (Rs 1000000) We have paid a custom duty of Rs 250000 And custom clearance charges Rs 15000. And freight charges Rs 50000.
Please provide me the accounting entry for the above example.
Also advice what should be the value to declare monthly return of VAT
03 July 2012
The relevant exchange rate to book import purchase basic amount will be as notified by RBI on the specific transaction date.
The custom duty will be computed on the basis of rate mentioned in Bill of entry.
The portion of custom duty which will be availiable for cenvat credit will be taken in RG 23A II and rest of custom duty on which no cenvat was availiable will be loaded with Raw Material Purchase Account. So, The entry will be --- Raw material Purchase - Import .....Dr (Basis Raw material price+portion of custom duty on which cenvat credit is not availiable) cenvat RG 23A II ..........Dr (cenvatable portion of custom duty)
To custome duty payable ..... cr (custom duty calculated on the basis of exc. rate of BE) vendor account.............cr (basic purchase amount)
CAclubindia
