12 June 2014
Company has during the year received 20lac $ as advance against supply of material and refunded the same 20Lac $ during the year due to cancellation of order.exchange fluctuation cost has been reimbursed by customer.
My question whether to show this in notes of account as forex inflow outflow.
I my opinion , you are not required to show the same.
Because Para 5(Viii) of part II of revised schedule VI says :
Value of Imports on CIF basis should be disclosed in respect of raw material ,spare & Component & capital goods.
It covers some issue like, - Buying commission will be included(Para 9.13 of ICAI statement) - Interest will be excluded(Para 9.15 of ICAI statement) - Goods in transit will be considered - Composite bill of material to be delivered in installment.
Apart from supra , I have not read other things so in my opinion No need to show the same.
CAclubindia
