Ajit Desai (Accountant) (39 Points)
16 December 2009I want to know the accounting entries for following transaction & under which AS it is covered.
If I purchased DEPB Licence from Party (A) at discount. A raises invoice for same of Rs.1,00,000 plus Vat 4% and value of customs duty benefit is Rs.1,10,000/- (CVD + BED) when I import the raw material I use this custom duty Licence.
MAGESH.G
(STUDENT)
(195 Points)
Replied 22 December 2009
Accounting for DEPB License
1) For purchase of DEPB entitlement
DEPB entitlement Dr. 100000
To Party 100000
2) For import of material worth Rs 10L on which BCD is 1L (not cenvatable) and Rs 10000 is CVD (cenvatable) with payment of duty-
Raw material inventory Dr. 10L+1L
Cenvat receivable Dr. 10,000
To DEPB entitlement 100000
To BANK 1010000
Dayal
(Gen. Manager - Indirect Taxation)
(3434 Points)
Replied 21 July 2011
The calculation is incorrect
CAclubindia
