Question ID :
44338
accounting treatment for MEIS Script
Dear Experts,
Can some one guide on accounting treatment to be followed for MEIS Script sale for FY 21-22 and FY 22-23 under following situation.
Company received approval from Govt for MEIS script before 31st March 22 and Sale of MEIS took place in April 22.
My thoughts on same are as under -
As on 31st March 22 (on accrual of benefit)
MEIC Script Assets (Current Assets) Dr
To MEIS script income (Indirect Income)
in FY 22-23 (on actual sale of script)
Customer Ac Dr
To MEIC Script Assets (Current Asstes)
Can someone guide ???
Posted by
chetan jadhav
on
Aug 04, 2022
Filed Under
Companies Act, 2013
Your entry on receipt of MEIC is perfectly all right. However on sale your entry is incomplete. On sale you have to pass the following entry :
Customer A/c Dr.
Loss on sale of MEIC certificate Dr.
To MEIC Script Assets.
To Gain on sale of MEIC Certificate Assets.
Because on the actual sale of the certificate there may be gain or loss. Any gain or loss shall be booked after taking care of expense incurred in sale.
Further, you have to levy GST on sales.
Posted by
CA. JHA SHANKAR KUMAR on
Aug 05, 2022
Answer ID :
83569
With Due respect, sale pf MEIS script is exempted under GST vide notification.
Posted by
chetan jadhav on
Aug 06, 2022