Exchange rate clarification

This query is : Resolved

Yuvakishore (Querist)
Follow

04 April 2014 Dear Sir,

We are a Manufacturing Company located under SEZ. We are importing 95% from outside India. The Problem is we are following Import Custom rate to book the purchase entries in our accounting Software. But is it correct procedure or we need to follow RBI rate to book all the Purchases.. if we follow RBI rate it was fluctuating by day by day..

Please anyone can help me to provide such information regarding above query along with any documentary stuff..

Thanks in Advance..

Yuvaa

CA Jitender Sharma

CA Jitender Sharma (Expert)
Follow

04 April 2014 You are correctly booked your purchases at import custom rate .

in addition to above you need to book ex-difference at the year end as per AS-11.

Yuvakishore

Yuvakishore (Querist)
Follow

04 April 2014 Dear Sir,

Thanks for the reply. But our Auditor had instructed us to book Purchase entries on RBI rate. So on which way we need to follow.

Thanks,

Upgrade to CAclubindia Pro. Subscribe Now!