Commodity Broker shall measure the inventories at Fair value less cost to sell.
Producers of Agriculture, forest products and minerals products shall measure at Net Realizable Value.
Inventories are assets:
(a) held for sale in the ordinary course of business;
(b) in the process of production for such sale; or
(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.
Inventories shall be valued at lower of cost and Net Realisable value
Cost shall include:
Cost of Purchase shall include
+ Non Recoverable Taxes and Duties
+ Transport, Handling and other
-Trade Discount and Rebate
Cost of Conversion shall include all cost that directly related to the units of production such as direct labour, fixed and variable production, overhead incurred in converting material into finished goods.
Other Costs are those costs which bring inventories into present conditions and location.
Following costs are excluded from the costs:
There are two methods of cost measurement technique:
Following disclosure shall be made:
(Author can be reached at firstname.lastname@example.org)
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018