06 May 2017
at what rate the export sale is to be booked rbi rate, shipping bill rate,customs exchange rate notification , sbi tt rate , other banks rate
21 July 2024
When booking export sales in your books, the exchange rate to be used generally depends on the prevailing regulations and standard practices. Here’s a breakdown of the rates you mentioned and their relevance:
1. **RBI Rate (Reserve Bank of India Rate):** - The RBI publishes exchange rates regularly. These rates are indicative and used for various financial transactions. For export sales, the RBI reference rate or the exchange rate prevailing on the date of the transaction can be used. These rates are typically used for financial reporting purposes.
2. **Shipping Bill Rate:** - The shipping bill rate is the exchange rate mentioned in the shipping bill issued by the customs authorities. This rate is used for customs clearance and documentation purposes related to the export transaction.
3. **Customs Exchange Rate Notification:** - This refers to exchange rates notified by the customs department for specific purposes, such as valuation of goods for customs duty assessment. It may also include rates used for converting foreign currency values to INR for customs clearance.
4. **SBI TT Rate (State Bank of India Telegraphic Transfer Rate):** - SBI TT rate refers to the exchange rate offered by State Bank of India for telegraphic transfers or overseas remittances. This rate is used by banks and businesses for actual transfer of funds in foreign currency.
5. **Other Banks Rate:** - Different banks may offer varying exchange rates for transactions involving foreign currency. These rates are influenced by market conditions and bank-specific policies.
**EDI (Electronic Data Interchange):** - EDI refers to the electronic exchange of business documents between organizations using a standardized format. In the context of export documentation, EDI is used for transmitting shipping bills, invoices, and other trade-related documents electronically to customs and other agencies. EDI systems streamline the export process by reducing paperwork and enabling faster processing of documents.
**Choosing the Exchange Rate:** - For booking export sales in your accounts, the exchange rate to be used typically depends on your organization's accounting policy and the purpose of the transaction: - **For Financial Reporting:** Use the RBI reference rate or a bank's TT selling rate prevalent on the date of the transaction. - **For Customs Clearance:** Use the exchange rate mentioned in the shipping bill or as notified by customs authorities. - **For Banking Transactions:** Use the exchange rate offered by your bank (SBI TT rate or rates from other banks) for actual remittance or fund transfer.
**Accounting Treatment:** - Ensure consistency in the exchange rate used across all export transactions for accurate financial reporting and compliance with regulatory requirements. - Document the exchange rate used and the source of the rate (RBI, shipping bill, customs notification, bank TT rate, etc.) for transparency and audit trail purposes.
In conclusion, the specific exchange rate to be used for booking export sales depends on the purpose of the transaction and the relevant regulations. It's advisable to consult with your accountant or financial advisor to determine the most appropriate exchange rate for your export transactions based on current guidelines and your organizational policies.
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