Custom Duty Account

srinivas.chittem

Hi All,

One Query from Import Trading Scenario. I have Passed Purchase transaction (Excise Trading)with all custom duties then the following GL entries effected (Let assume Invoice Val is Rs 1000 and Excise is Rs 200)

Vendor -- 1000 Cr
Custom Duty House -- 200 Cr (Balance Sheet)
Cenvat Credit (Trading) -- 198 Dr (Balance Sheet)
Purchases --1002--Dr

System is passing same amount of exicse when we do sales. then Rs 198 is nullify. My query is that for which transaction Custom Duty 200 will nullify?

mgmutha

Apart from entries you have mentioned i.e.
Vendor -- 1000 Cr
Custom Duty House -- 200 Cr (Balance Sheet)
Cenvat Credit (Trading) -- 198 Dr (Balance Sheet)
Purchases --1002--Dr

There is also following entries are also gets updated;

Inventory A/c Dr. 1002
Direct Cost Applied A/c Cr. 1002

Now, with reference to your query. To nullify Custom Duty House Account. You will going to pay Excise Amount to Custom House before releasing material from Customs.
Custom Duty House A/c Dr. 200
Bank A/c Cr. 200