Sales value in case of sales

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Dear All,

 

It will be great help if anybody could explain :

1. At what Value, the Export Sales are to be Recorded ? Whether it is CIF Value or  FOB Value ?

2. Kindly Quote some citation or standard in support of your answer

3. Is it somewhere prohibited to book our sales on CIF Value for accounting purpose?

 

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     Thanks and Regards,

 

 

 

Garg Garg & Associates
Raghav Garg |  Partner | Chartered Accountants

 

+

Kothi No. 35, Sector 7, Urban Estate,

Kurukshetra, Haryana 136118

(

Board: +91 1744-222484 Mobile: +91 981 222 0035  

Email: ca.raghavgarg @ gmail.com

 

 

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Replies (1)

Gross contract value is sales value (CIF) as we claim the transportation / clearing and other expenses in P/L account which are part of CIF value, 

if we record FOB basis then we have to pre-determine the other charges, viz transporation, clearing and ancillary expenses incurred to export sales, which is not possible to ascertain the exact amount before the export takes place in real.


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