TREATMENT OF EXPENDITURES, Accounting - Auditing

[S.C. WADHWA]

A company developed cyclinders for getting packing materials. These cyclinders costs us ₹ 70000/- These cyclinders are in possession of suppliers.

As and when will order supplier for packing materials, he will supply the packing materials made using  such cyclinders.

Query is

In which head we should book such cyclinders, keeping in mind that such cyclinders has not entered the premises of company i.e. same is in posession of supplier.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

For which purpose the query is raised? For income tax purpose or central excise purpose?

[S.C. WADHWA]

Dear Experts,

For Income tax purpose.

Regards,

WADHWA