Whether CENVAT credit should be taken for valuation of closing stock?
Please reply with relevant paragraph of AS-2.
5 Replies
ashish gupta
( student)
(1922 Points)
Replied 08 March 2010
NO Cenvat Credit can not be added to the value of stock as
TAxes to the extent recoverable will not form part of the value of inventory.
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 08 March 2010
I agree with Ashish gupta.
According to AS-02, we need to exclude all tax amount, which are recoverable.
with regards,
CMA.Baskar.V
KUSHAL AGRAWAL
(CA Final Student)
(128 Points)
Replied 26 May 2010
both mr. ashish gupta and CMA Chaskar are correct,
as-2 specifically excludes cenvat credit to be included in closing stock.. You can also refer to Guidance note Issued by ICAI on Treatment of Excise Duty
KUSHAL AGRAWAL
(CA Final Student)
(128 Points)
Replied 26 May 2010
both mr. ashish gupta and CMA Chaskar are correct,
as-2 specifically excludes cenvat credit to be included in closing stock.. You can also refer to Guidance note Issued by ICAI on Treatment of Excise Duty
yogesh Jain
(Article)
(24 Points)
Replied 11 October 2010
If a company is pure trading company , registered under central excise act & just passing on excise duty according to QTY. should we include excise duty in valuation of closing stock ?
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