Please Help: excise duty
Posted Date : 09-Oct-2013 , 11:52:17 am | Posted By shankygarg
whether excise duty is taken into consideration during the valuation of stock?According to me it should not be included because it is recoverable.BUT if it is included then please clarify with the related provision or case.
Category : Excise | Answers : 0 | Comments : 3 | Hits : 419
Answers
Comments
Mahesh Garg
16-Oct-2013 , 12:21:01 pmExcise duty on closing stock of Finished goods should be included and it will not have any effect on profits. Mahesh Garg, 9818245942
sramalingam
17-Oct-2013 , 12:08:01 pmdont include excise duty since ed payable on despatch only.
Deepak Kumar Mishra
01-Dec-2013 , 12:17:16 pmAs per Guidance note issued by ICAI, Since the liability for excise duty arises when the manufacture of the goods is completed, it is necessary to create a provision for liability of unpaid excise duty on stocks lying in the factory or bonded warehouse. It is true that the recovery of the duty is deferred till the goods are removed from the factory or the bonded warehouse and the exact quantification will, therefore, be at the time of removal and that estimate of duty made on balance sheet date may change on account of subsequent events, e.g., change in the rate of duty and exports under bond. But, this is true of many other items also, e.g., provision for gratuity and this cannot be an argument for not making a provision for existing liability on estimated basis.