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When to Account for DEPB & Duty Draw back

Sunil Nayak (Chartered Accountants) (96 Points)

03 July 2008

Anybody can tell me when the DEPB & Duty drawback receipts should be accounted?

Is it on Accrual basis or Cash basis. Kindly provide the rationale for the treatment.

Regards

sunil nayak

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2 Replies

Devendra Goyal (Service) (24 Points)
Replied 04 July 2008

Dear,

DEPB IS EXPORT BENIFIT IT IS ACCOUNT FOR IN THE BOOKS ON ACCRUAL BASIS, AT THE END OF THE QUARTER/YEAR IT IS NECESSARY TO PASS ACCURED BENIFITS FROM DEPB FOR EVERY INVOICE FOR WHICH BILL OF LADING IS PREPARED.

C.A.Devendra Goyal

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CA Pramod Singhal (CHARTERED ACCOUNTANTS) (68 Points)
Replied 26 December 2008

Dear, As far income as concern if we have simply export the material and as per law we are eligigle to take benefit as DEPB etc. means we are not eligible to book income for the same untill we have not use or sale the same. Please understand this example. If before the end of previous year we have received the DEPB lic. but not sale we have to book the income. if we have not received the depb lic. then there is no reason to book the income. hope u will satisfy with my answer if not plesae fell free and reply with query. Thanks & Regards