Quick Answer: Is Custom Duty A Direct Expense?

What are the duties of customs?

The principal roles of the Customs Service include:exercising customs control on the commercial international exchange.assessing and collecting customs duties and taxes in the part calculated at the State’s border (VAT, excise)fighting against smuggling activity and counteracting customs fraud..

Is clearing charges a direct expense?

Clearing Charges Expenses paid for the clearance of purchased goods are treated as direct expenses and recorded on the debit side of the Trading Account.

Is Rent a direct or indirect expense?

Indirect costs are expenses that apply to more than one business activity. Unlike direct costs, you cannot assign indirect expenses to specific cost objects. Examples of indirect costs include rent, utilities, general office expenses, employee salaries, professional expenses, and other overhead costs.

What are the direct income in accounts?

Direct income is one which is earned directly by way of business activities. Indirect income is one which is earned by way of non-business activities. For example, sale of old newspapers, sale of carton boxes, etc.

What are general expenses?

General expenses are the costs a business incurs as part of its daily operations, separate from selling and administration expenses. … Examples of general expenses include rent, utilities, postage, supplies and computer equipment.

What is custom duty and its types?

Custom duty is a type of indirect tax that is levied on all the goods that are imported to the country as well as some goods exported from the country. … While value-based duties are called valorem duties, quantity-based duties are called specific duties.

What is custom duty in accounting?

Definition: Customs Duty is a tax imposed on imports and exports of goods. Description: The rates of customs duties are either specific or on ad valorem basis, that is, it is based on the value of goods. … Additional Customs duty; 3.

Is electricity a direct expense?

The cost of electricity is an indirect cost since it can’t be tied back to the product or the specific machine. However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured.

What is expenses and examples?

Costs that are matched with revenues on the income statement. For example, Cost of Goods Sold is an expense caused by Sales. Insurance Expense, Wages Expense, Advertising Expense, Interest Expense are expenses matched with the period of time in the heading of the income statement.

Is selling expense a direct expense?

Direct expenses are those incurred at the exact point-of-sale for a product or service. Examples of direct selling expenses include transaction costs and commissions paid on a sale.

What are the examples of direct expenses?

Examples of direct expensesraw materials.sales commissions.manufacturing supplies.direct labor.customer service.purchase of goods to be sold.transit of goods from the supplier.

Is carriage inwards a direct expense?

Carriage inward is part of the direct cost of the raw materials you purchased. In this instance (carriage for raw materials) it would not be counted as a separate expense but would form part of the cost of the asset.

What are examples of indirect costs?

Indirect costs include costs which are frequently referred to as overhead expenses (for example, rent and utilities) and general and administrative expenses (for example, officers’ salaries, accounting department costs and personnel department costs).

What is difference between excise duty and custom duty?

Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country.

What are the direct and indirect expenses?

Direct Expenses: Direct expenses are those expenses that are paid only for the business part of your home. … Indirect Expenses: Indirect Expenses are those expenses that are paid for keeping up and running your entire home. Examples of indirect expenses generally include insurance, utilities, and general home repairs.

Is Rent a direct expense?

Although direct costs are typically variable costs, they can also include fixed costs. Rent for a factory, for example, could be tied directly to the production facility. Typically, rent would be considered overhead.

Is Depreciation a direct expense?

It is direct because it is traceable to Department 23 without any allocation. The depreciation of this same machine will be an indirect cost of the products manufactured with that machine. … Indirect manufacturing costs are also referred to as manufacturing overhead, factory overhead, or burden.

What is the difference between direct and indirect rule?

what are the differences between DIRECT and INDIRECT rule? Direct rule sends their own officials to rule, impose on the culture, and use the land for their own colonies. Indirect rule allows local rulers to decide on things, try to groom the kids to be like them, and did allow culture to stay (for the most part).