Accounting entries on grant of MEIS License and sale thereof, Accounting - Auditing

[bharat adesara]

Dear Sir

X co. is exporter and DGFT issued a licence under MEIS schem for import duty.

i.e. X co granted license valued ₹ 100000. and company sold it to y comapany @rs 98000

how this transaction should be recorded in book of X company.

GST is NIL rate am i right?

Please reply at the earliest

Posts / Replies

[YAGAY andSUN]

₹ 2000/- can be shown as discount. You have to reverse the proportionate ITC, if availed on procurement of MEIS. There is no GST on MEIS.