Hello All
- When Advance License (Now know as Adv Authorisation) and / or DEPB License is issued by Director General of Foreign Trade.
- How the Custome duty is adjuested (A/c Entries) when good are imported on duty free.
Srini
Srinivas (IT Professional) (64 Points)
02 May 2009Hello All
Srini
Srinivas
(IT Professional)
(64 Points)
Replied 05 May 2009
Originally posted by :Srinivas | ||
" | Hello All Can any one tell me what would be the accounting entries : - When Advance License (Now know as Adv Authorisation) and / or DEPB License is issued by Director General of Foreign Trade. How the Custome duty is adjuested (A/c Entries) when good are imported on duty free. Eg. DGFT has sactioned an Advance License of Rs 1,50,000 and DEPB License of Rs 1,20,000 to ABC Ltd Now ABC Ltd can import Duty Free Goods Upto Rs 1,50,000 against Adv License and Rs. 1,20,000 against DEPB ABC Ltd has imported the goods worth Rs. 4,00,000 (Excld. CVD Rs 31500 & Custom Duty Rs. 45,000) against Adv License and goods worth Rs. 3,00,000 (Excld. CVD Rs. 22500 & Custom Duty Rs. 37,400) Now what accounting entries will ABC Ltd will pass in its Book Thanks in Advance Srini |
" |
Srinivas
(IT Professional)
(64 Points)
Replied 06 May 2009
Hello Friends
Please help me out. Whether any accounting entries is passed for Advance License. if yes then please let me know.
Regards
Srinivas
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 08 May 2009
Mr. Srinivasan
As normally we pass the entry of DEPB/Advance licence in the books of account when it has been admitted and issued by JDFT. Either U may adjust with your import or U can sale it.
Debit DEPB/Advance Licence Receivable
Credit Export Incentive.
When U sale it
Debit Party A/c
Credit Receivable A/c
Likewise U can pass your entry when U adjust with custom duty.
Surana, Chennai
9952967237