Excise duty paid by a dealer of Central Excise to be added to inventory cost (adding to purchase) or it should be kept separately as current asset and ED collected also to be credited to same account? or ED collected to be shown as income?
Dattatri (Tax consultant) (121 Points)
23 June 2016Excise duty paid by a dealer of Central Excise to be added to inventory cost (adding to purchase) or it should be kept separately as current asset and ED collected also to be credited to same account? or ED collected to be shown as income?
CA Brijendra Tripathi
(Consultant)
(142 Points)
Replied 23 June 2016
This is a type of value added tax therefore second option should be better as it is to be collected ultimately from the buyer.