whether provision for excise duty on finished good laying in closing stock shall be allowed as deduction under the income tax act
Others
CA rahul (BCOM(H) ACA) (725 Points)
15 September 2011
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 15 September 2011
Hi I am of the opinion that Yes , excise duty will be included in computation of inventory as per section 145A of income tax act ,1961, reason being as per section 3 of excise act taxable event is manufacture and for the adminstrative convenience it is bieng calculated at the time of removal so it is definitely the cost incurred to bring the inventory to present location and condition and same is also bieing opined in guidance note on excise treatment and also the same treatment is to be done in accounting too .
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
