Recoverable taxes on receipt accounting

Hi All,

Please help me to understand weather Taxes shuld be calculated on Recept Accounting or not?

If i talk about client business scenario, business uses two types of taxes Recoverable tax & Non Recoverable Tax. At the time of PO taxes are mentioned and at the time of Invoicing theses taxes are paid to supplier but later Recoverable Taxes are recovered from Goverment.

Now my question is if Receoverable taxes are receovered from Government so it should not be part of my item cost and should not calculated on Receipt accounting level?

Thanks,

Manish Sharma