Ganeshbabu K (Audit and Tax Advisory) (48564 Points)
04 December 2012please let me know what exchange rate we have to use to book import purchases
customs exchange rate,or exchange rate on date of supplier invoice
at what date we have to recognise purchase,
date of bill of entry or supplier invoice date
ANTONY EDGAR
(CA in Practice)
(89 Points)
Replied 05 December 2012
The accounting and the exchange rate for import depends upon on what basis you are importing the goods. i.e, is it on CIF,FOB etc. If its on CIF basis, the purchase has to be entered as per bill of entry date with the customs exchange rate. In case of FOB it has to be as per invoice date.
Basic logic is the entry has to be passed once the ownership and risk of the goods is passed on the buyer
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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