Sample accounting

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Guest

Guest (Querist)

12 March 2013 what is the Accounting treatment of goods received free of cost? is there any complication as per any law?

Ankit

Ankit (Expert)
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12 March 2013 Dear Rakhi,

even though the goods are received free, you need to record them in your stock.

you can either record them at zero value or say at a nominal value of Re. 1

- Ankit

Guest

Guest (Querist)

12 March 2013 if we have exciseable good and send a free sample to a party then we should charge charge excise duty on it or not ?

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Ankit

Ankit (Expert)
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12 March 2013 I think yes you have to..

you will have to refer to the valuation rules to calculate the value on whihc excise duty has to be paid.

I think the value has to be calculated as per Rule 4 of the valuation rules..

- Ankit