Inventory Valuation for Import Purchase
This query is : Resolved
21 January 2022
Imported of Machine at Rs.115000 from China and paid custom duty Rs. 15000 (As per custom Tariff) and till 31st March,2021 if we have this machine in closing stock, while doing valuation whether we shall include the custom duty or not, I have done the valuation as under ;
Cost of goods Purchase
115000 = Basic Cost
20000 = Duty Cost
6000 = Insurance & Freight (CIF)
5000 = CHA & Other charges
146000 = Total Cost
We have charged the Custom Duty, Insurance and Freight, CHS and other Import Charges to P&L already, So this all cost would be added to Inventory or not, and if yes then which cost shall be added to Machine Value at year end?
Please advice.
Cost of goods Purchase
115000 = Basic Cost
20000 = Duty Cost
6000 = Insurance & Freight (CIF)
5000 = CHA & Other charges
146000 = Total Cost
We have charged the Custom Duty, Insurance and Freight, CHS and other Import Charges to P&L already, So this all cost would be added to Inventory or not, and if yes then which cost shall be added to Machine Value at year end?
Please advice.
22 January 2022
Reverse p and l charge and add all costs to the inventory and machine value.
24 January 2022
Sir,
This is our business to import machine, so machine is our inventory. So at time of import we are charging this expense to P&L. But in Inventory valuation, is it require to add custom duty, Freight and Insurance in basic cost value of machines?
Please guide.
This is our business to import machine, so machine is our inventory. So at time of import we are charging this expense to P&L. But in Inventory valuation, is it require to add custom duty, Freight and Insurance in basic cost value of machines?
Please guide.
24 January 2022
Such expenses has to be capitalised to the cost of the machinery.
06 April 2022
Imported materials (Our regular trading products) at Rs.115000 from China and paid custom duty Rs. 15000 (As per custom Tariff) and till 31st March,2021 if we have this machine in closing stock, while doing valuation whether we shall include the custom duty or not, I have done the valuation as under ; Cost of goods Purchase 115000 = Basic Cost 20000 = Duty Cost 6000 = Insurance & Freight (CIF) 5000 = CHA & Other charges 146000 = Total Cost We have charged the Custom Duty, Insurance and Freight, CHS and other Import Charges to P&L already, So this all cost would be added to Inventory or not, and if yes then which cost shall be added to material Value at year end? Please advice.
07 April 2022
Yes, add all the above costs to inventory.
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