Could anyone pls. tell me how to record import purchase and at what rate.........?
Please it is very urgent.
Accounting of Imports
Sourabh Arora (Article) (109 Points)
26 November 2010
Sourabh Arora (Article) (109 Points)
26 November 2010Could anyone pls. tell me how to record import purchase and at what rate.........?
Please it is very urgent.
CA Tarkeshwar
(job)
(77 Points)
Replied 02 December 2010
Dear friend
import purchase is subject to Basic Import duty ( including additional custom duty U/s 3(1) of custom Act as the case may be)
no credit is allowed on basic custom duty but credit is allowed in respect of additional custom duty which is levied equal to excise duty had such imported goods bought within India. effective rate is 8.24% (may be differ depending on the nature of goods).
entries should be
Purchases A/c( including Basic custom duty) .........................................Dr.
Cenvate Credit Receivable ( on additional custom duty) .......................Dr.
To Bank A/c / Creditor A/c
Tanu
(Accountant)
(767 Points)
Replied 10 December 2010
But Dear, I've seen to take credit of basic duty also in manf. unit.
There is written BCD, CTD like. only cess paid not on add. duty not claimed.
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