1.Which import value is considered for inventory valuation for inventory cost calculation ? Import cost include which amount? CIF amount or FOB amount? Please reply
2.GST Unclaimed is considered for inventory cost?
3.GST claimed is considered for inventory cost?
As2 does not recognise tax in valuating inventory. All unallocated overheads are expensed and Tax is also expensed but not into cost of inventory. Costs of purchase include all import duties which are not recoverable by the company from tax authorities. Hence, try and find out if CIF & FOB are taxable and include them in the cost of inventories.
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