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Fixed Assets purch. outside India by Parent Co for Subsi.Co.

Ajay.G (Service) (43 Points)

07 July 2011

Hello Everyone,

A Parent Co. situated in Singapore & it's Subsidiary Co. is in India. Parent Co. purchased Machines, Tools from Singapore market on behalf of Indian Subsi. Co. & sent those Machines, Tools to India by issuing Debit Note. ( Including Product value & Freight Charges) Indian Subsidiary Co. paid Custom Duty at airport for clearance of the goods.

How should the Subsidiary Co. book the entries for those Fixed Assets imported with Debit Note from Parent Co. & Custom Duty payment by Subsi. Co. for the same.?

Can any one guide me on the above transactions.?

Pls. reply asap....

Regards,

Ajay

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4 Replies

Sandeep (Manager - Finance) (23 Points)
Replied 07 July 2011

Along with Debit note the parent compnay needs to submit the orginal invoices in support of debit note transactions, based on which susidiary can account for transacation crediting parental compnay and recognising asset as per the norms

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Ajay.G (Service) (43 Points)
Replied 07 July 2011

Fine. On that basis, Can I book Asset purchase entry.?

Parent Co. Dr. Note containing only Product value & Freight charges. Custom Duty has been paid by Subsidiary Co. Pls. Let me know the Custom Duty payment entry.

Regards,

Thanks in Advance.......

Ajay