Export sales

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Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 when to recognise export sales in Books of A/cs & at what value....

Date of provisional INvoice -08.08.2012
Date of Exchange control (LEO DATE)- 13.08.2012
Date of Export Invoice- 13.08.2012
Date of BOL- 19.08.2012

aadish

aadish (Expert)
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04 October 2012 Date of Export Invoice and payment to be recognised at that value when money received, and difference is foreign exchange loss or gain.

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 at what value export sales should be booked in BOA...

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 October 2012 As per para 2.40 of the Foreign Trade Policy,

All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realised in freely convertible currency.

However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of ACU or Nepal or Bhutan.
Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.

Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit.

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 organisation is using exchange rate given in exchange control copy for recording export sales i.e. FOB Value provided in shipping bill.... Is this correct.... plz substantiate ur answer.....