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Export Sales

23 June 2010

My client is an exporter. On 31.03.2010 there are some export invoices ,the goods against which despatched,shipping bills are in the date of 31.03.2010 but the bills of lading in espect of these bills are of April2010. Please suggest whether these bills whose date of bill of lading is in April 2010 can be shown as Export Sales in FY 2009-10

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CA VINAY BANSAL (In job with KPMG) (289 Points)
Replied 23 June 2010

Dear frnd,

As per AS 9,. revenue is to be recognised when the risk and rewards are transferred to the buyer.

Here in case, the goods are FOB, then it will be booked as soon as it reaches the dock.

and in case it is CIF, it should be booked when the buyer recieves.

No treatment for movement from warehouse or facrtory,

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 22 December 2010

Originally posted by : DUSHYANT KAPIL
	My client is an exporter. On 31.03.2010 there are some export invoices ,the goods against which despatched,shipping bills are in the date of 31.03.2010 but the bills of lading in espect of these bills are of April2010. Please suggest whether these bills whose date of bill of lading is in April 2010 can be shown as Export Sales in FY 2009-10

Please be specific point to point to get clear solution

1. are goods covered under ARE1? are sealed by Excise department?

2. how much distant is the port of loading from your place? BL can be issued back dated, but boarding stamp will be on actual date.

in case ARE1 procedure is followed under excise supervision then its the sale for year 2009-10. as it leaves factory of production and invoice issued.