Ria Saraf (CA final student) (110 Points)
03 April 2010
I am making the accounts of an export house.They export Steel Billets and receive export incentives (DEPB) on it. The sale took place on 13.03.2010 worth Rs 13 crores but the money has not been received from the party. do I treat the license value as income in FY 2009-10 or in FY 2010-11. pls help.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 03 April 2010
You should definitely treat the license value as Income of the Financial Year 2009-10. Actual money realisation does not considered.
keep smiling....
regards,
ratan
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 03 April 2010
RIA SARAF,
AT THE TIME OF EXPORT SOME EXPORTER RECEIVED THE ADVANCE AMOUNT , AND SOME EXPORTER 'S FOREIGN CURRENCY AMOUNT NOT TO BE REALISED WITHIN SIX MONTH FROM THE DATE OF EXPORT THE CUSTOM DEPARTMENT AND DGFT PROVIDE THEM THE DEPB LICENCE .
AS PER YOUR QUERY, ACCORDING ME YOU MUST treat the license value as income in FY 2009-10
BECAUSE WHEN THE EXPORT DETAILAS VERIFY BY DGFT / CUSTOM / IDEPARTMENT THE VERIFICATION REPORT WILL BE ELGIBLE BY CHARTERED ACCOUNTANT , IN PRESCRIBED FORM THE "CA CERTIFICATE/ CS/ICWAI CERTIFICATE" WILL BE GIVEN PREFERENCE AND LEGALLY ELGIBLE ON 2009-10 EXPORT NOT FOR FINANCIAL YEAR 2010-11.
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