Please Say Me What should be Capitalized. Commercial Invoice Value 30 Lakhs Custom Duty 6 Lakhs Cha Expenses 1 Lakhs
Prop Has received Bill of Entry.Please say should Bill of Entry Value & Invoice Value be same.what are the points to be consider while passing the fixasset entry. Proforma Invoice is ok or Commercial Invoice is needed. The Prop pays Vat,Service tax,Income tax can he take any benefit in above taxation
on invoice the machine value is in USD Currency.IS USD to be converted in RS.and account.
18 January 2011
You have to capitlaized landed cost of imported machine.
First convert USD into Rs. at the rate on which payment is made.
Then custom duty which can't be availed i.e Basic custom duty and cess on such will be part of cost of machinery. CHA expenses also will be part of cost of machinery. Commerical invoice in USD also be needed. As per you information, Prop is not registered in Excise hence all duty in bill of entry will be part of cost of machinery.
First of all, ALl entry related to CHA expense, loading unloading, insurance, transport will be debited to Machine under installation, after when machine will be put to use, then it will be debtited to Machine a/c.
18 January 2011
Landed cost of machine includes 1. Basic value of machine 2. Custom duty which can't be availed. 3. CHA expenses 4. Transporataion cost 5. Loading unloading exp 6. Other expense which are requried to put to use the machinery.
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