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Answer Posted / h.r. sreepada bhagi
Landed Cost of any Good comprises of the Cost of goods
payable to the supplier, transportation, insurance, loading
& unloading charges, incurred by the purchaser. In other
words, it is the total net cost incurred by a purchaser in
getting the goods/materials in his place of business for
sale or use them in the manufacture of other goods.
If Excise Duty & VAT are charged & the buyer is entitled to
take credit of the same, it should not be included in the
cost. These should be reduced from the invoice value while
arriving at the landed cost.
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