21 October 2009
If it is a trading firm with only one Export shipment and there are other domestic sales, then Schedule VI disclosure requirement of Companies Act be kept in mind. Also, fluctuation norms and accounting of Foreign Exchange rate (FER) fluctuations has to be directly accounted i.e. FER at which material is sent and billed and FER on which payment is received. This differrence is to be shown seperately in Accounts as such, not as part of sale proceeds. Registrations of IEC Code and relevant Export Promotion Councils must be obtained. If there is any subsidy in the form of tradeable Import Licences, then Accounting policy may be drafted to treat it as Stock in Trade and valued at lower of cost or net realisable value.
07 April 2010
sir i have one more about export undertaking.
whether an exporting sole proprietor will get exemption u/s 10B if he collects material products , process and made shipment to abroad. It is the matter that the concern was not situated in FTZ,EPZ,SEZ etc. He already has IEC code.
CAclubindia
