09 October 2012
custom rate given in shipping bill/BOL has to be taken and not the rbi rate. The bank rates are used at the time the payments are recieved.
09 October 2012
For booking your sale it is the custom buying rate for the currency in question as indicated in your shipping bill. When you receive the payment you have to take the rate given by your bank and book the exchange loss / gain and accordingly increase / decrease your sale value.
If you have received advance payments and adjust into the sale, the adjustment of the currency has to be done after you booked the sale and accordingly apply exchange loss / gain. If entire sale proceed is received in advance before shipment, then the value of your foreign exchange fully received is your sale value.
If you make sale say on 25 March, you have to book the sale on custom rate of March. However, exchange gain or loss is adjusted twice. On 31st March you have to value it as per SBI rate (not your bank rate) and account for exchange loss or gain. In your next accounting year you receive the proceeds. You will again have to account exchange loss / gain between SBI rate of March 31 and what you receive from your bank.
When you are taking the SBI Rate you have to take the similar rate what you get from your bank. Eg for exports TT Buying Rate.
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