Excise duty on closing stock valuation
This query is : Resolved
24 May 2012
WHAT IS THE LOGIC BEHIND ADDING EXCISE DUTY ON CLOSING STOCK AS PER AS2 INVENTORY VALUATION , EXCISE DUTY IS NOT OUR COST SO IT SHOULD ALSO NOT BE INCLUDED IN STOCK VALUATION?
24 May 2012
Dear Ajay,
The logic is, Closing stock to be values at cost and only profit element to be removed and excise duty form part of cost, as it is charged on manufacture.
If we apply your logic that is excise duty is not our cost, you can say all cost incurred are not our cost since will be recovered from customer
Kindly revert to me for any clarification.
Regards,
CA.K.SHASHIKUMAR.K
The logic is, Closing stock to be values at cost and only profit element to be removed and excise duty form part of cost, as it is charged on manufacture.
If we apply your logic that is excise duty is not our cost, you can say all cost incurred are not our cost since will be recovered from customer
Kindly revert to me for any clarification.
Regards,
CA.K.SHASHIKUMAR.K
Message likes :
1 times
24 May 2012
i agree sir but if we consider excise duty in closing stock than we are not following matching concept , opening stock without excise duty and closing stock including excise duty . and as far as exps are concern their is no concept of credit as in the case of excise, so why we should include excise duty in cost of inventory?
24 May 2012
Refer ASI 14 on excise duty inclusion in CLosing Stock valuation.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
