Conversion rate used for converting value of Imported Item

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Rahul (Querist)
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10 January 2010 Sir, practically what conversion rate is used for converting the value of any Imported M/C or any imported item for that matter?

Is the rate given on BILL OF ENTRY used?

And suppose that 40 % advance payment has been done @ $1=Rs 40 on 1.5.2009. Bill of Entry date is 1.7.2009 & M/C has been Received in the factory on 1.8.2009. So can we use Rs 40(the rate prevailing at the date of 40% Advance Payment) as the conversion rate????? DO WE HAVE AN OPTION TO DECIDE BETWEEN Rs 40 & RATE GIVEN ON BILL OF ENTRY????

S.Siju Gemin

S.Siju Gemin (Expert)
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11 January 2010 On 01.05.2009
Account the advance payment @ Rs.40

On 01.08.2009
Enter Purchase of Machine @ (BOE rate)

Future settlement(60% Balance)
@ Exchange rate prevaling as on that date

Close the ledger account by transferring the difference to "Profit or loss on Foreign exchange difference Account"

Rahul

Rahul (Querist)
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12 January 2010 Thanks Mr. Gemin