Dear Sir,
We're purchasing imported items for our manufacturing purposes. All import purchase are against 100% advance payment TT.
At the time of advance payment, the vendor account will be debited in INR value. The exchange rate of conversion is the rate given by the bank in thier payment advise.
DR VENDOR 1000$ @ 45 = 45000
CR BANK 1000$ @ 45 = 45000
After 1 month (say 08/08/02011 this is the bill of entry date) we are receiving the consignment, and taking delivery after paying the customs duty to commissioner of customs. Goods received by factory is on 15/08/2011.
Now my question is
1. While booking the invoice what is the exchange rate i should adopt? Whether the exchange rate as on 08/08/2011 is to be adopted or 15/08/2011 rate is to be adopted or the fixed rate mentione by the customs in the bill of entry?
2. what is the view of AS 11 in this regard?
3. Also,pls let me know the correct procedure for accounting the imported bills?
expecting the reply at the earliest.
CAclubindia
