Question

why custom duty paid on raw materials is revenue expenditure​

Answer 1

Explanation:

Amount paid as compensation to the employees is a revenue expenditure. (e) Custom duty paid on import of machinery for modernisation of factory is a capital expenditure.

Answer 2

Answer:

All the expenditures which are incurred in the day to day conduct and administration of a business and the effect-of which is completely exhausted within the current accounting year are known as "revenue expenditures". These expenditures are recurring by nature

Import duty is a part of cost of material and hence, it is a revenue expenditure.

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