03 November 2010
We have Imported material 500.00 MT and lying at Vishakhapatnam port.bill of entry is in the name of our raipur unit.Now we want to sale some of this material(approx 200.00 MT) from vishakhaptnam port. we also have dealer registration in Vishakhaptnam. Is our vishakhaptnam depot will treated as Importers depot? how we can sale material . kindly give suggestion.
08 November 2010
Dear Sir, How i take entry of 200 MT in vishakhaptnam books.One of our local consultant says that this bill of entry need to be endorsed.
29 July 2024
When dealing with imported goods lying at a port and intending to sell part of the material from that port, you need to navigate through several regulatory and accounting steps. Here's a detailed guide on how to handle this situation:
### **1. Understanding Depot and Sales Regulations**
**1.1 Depot Status:** - **Importer’s Depot:** For the Vishakhapatnam depot to be considered as an importer’s depot, you must ensure that it is legally recognized and compliant with the relevant customs regulations. Generally, a depot is treated as an importer’s depot if it is directly linked to the import activities and meets regulatory requirements.
**1.2 Endorsement of Bill of Entry:** - **Endorsement Requirement:** If you are selling goods from Vishakhapatnam port, you may need to endorse the Bill of Entry. This endorsement allows the goods to be sold from the port directly and aligns with the customs regulations. Confirm this requirement with your local customs office.
### **2. Handling the Sale of Imported Goods**
**2.1 Entry of Goods in Vishakhapatnam Books:** - **Stock Transfer:** Since you intend to sell from Vishakhapatnam, you should record the 200 MT as an inventory transfer to the Vishakhapatnam depot.
**Example Accounting Entries for Transfer:** 1. **Transfer Entry:** ```plaintext Debit: Inventory Account (Vishakhapatnam Depot) – for the value of 200 MT Credit: Inventory Account (Raipur Unit) – for the same value ```
2. **Record Sale from Vishakhapatnam:** - **When Selling Goods:** ```plaintext Debit: Accounts Receivable / Cash (for the sale value) Credit: Sales Revenue (for the sale value) ```
- **GST on Sale (if applicable):** ```plaintext Debit: Sales Revenue (amount excluding GST) Credit: Output GST Payable (for the GST amount) ```
**2.2 GST Considerations:** - **IGST:** If the sale is happening in the same state as the port, IGST is not applicable. However, if the goods are sold to another state, you may need to charge IGST.
### **3. Regulatory Compliance**
**3.1 Customs Clearance:** - **Documentary Requirements:** Ensure all necessary customs documents are updated and in place. This includes the Bill of Entry, commercial invoice, and any endorsement required by customs authorities.
**3.2 Local Compliance:** - **Dealer Registration:** Ensure your Vishakhapatnam unit is properly registered as a dealer in the GST system.
**3.3 Inventory Management:** - **Maintain Records:** Keep detailed records of the quantity and value of goods transferred to the Vishakhapatnam depot and subsequently sold.
### **4. Steps to Take**
1. **Consult with Customs:** - Verify if endorsement of the Bill of Entry is required for selling goods from the port. Contact the local customs office in Vishakhapatnam for precise instructions.
2. **Update Books of Accounts:** - Record the inventory transfer and sale transactions in the Vishakhapatnam depot’s books as described above.
3. **Ensure GST Compliance:** - Charge GST appropriately and file returns reflecting these transactions.
4. **Maintain Documentation:** - Keep all relevant documents including the Bill of Entry, sale invoices, and GST returns for compliance and audit purposes.
### **Summary**
- **Endorsement of Bill of Entry:** Confirm with customs if endorsement is required for selling goods directly from the port. - **Inventory and Accounting:** Transfer the goods to the Vishakhapatnam depot’s books and record the sale accordingly. - **GST Compliance:** Ensure correct GST treatment based on the sale location and customer.
By following these steps and ensuring compliance with regulatory requirements, you can effectively manage the sale of imported goods from your Vishakhapatnam depot.
CAclubindia
