11 January 2012
Dear Experts, A company makes export sales. To claim the benefit of removal of goods without excise duty they are filing ARE-1. While accounting for the export sales they are not taking the rate in the RBI website as on the date of Bill of lading. Instead they take the amount which has been specified in the customs website which will be provided for every month (only one rate for one month for example in case of jan 2012 it might be Rs.50 per US $).
1)Is it proper? Does this amount to compliance with the AS of ICAI? 2)After that discount the bills in the bank and the proceeds of that discounted bill is lesser than the rate means they transfer that amount to profit or loss on account of foreign exchange fluctuations.
CAclubindia
