Can anyone let me know how to journalise the entry related to puchase from outside the country? Suppose invoice is for 4000 USD but bills of entry shows: Basic value 225000 BCD 20000 CVD 22500 Edu cess on CVD 4500 S&h Edu on CVD 2250 Add. duty 10000 Exchange rate on the bill of entry 1USD=45 INR. By what amount purchase should be debited... 225000+20000 or 4000*45+20000. Please clear my doubt if anyone know... Thanks
26 June 2011
Thanks to all of you but Agarwal sir still there is a confusion.I need to know the exact amount of purchase whether it is 225000+20000=245000 or 4000*45+20000=200000. Whether we should book the purchase by $4000 multiply the $ rate on the bill of entry or the amount which is calculated by the custom officer for calculating the duties...
26 June 2011
4000 USD multiply the $ rate on the bill of entry. Rs. 2.25 lakhs is only assesable value under Customs Act and not relevant for accounting the purchases. Hence, among the two options Rs. 200,000 is correct.
CAclubindia
