Date of accounting imports

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Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 On what date is the import bill accounted in books?
Is it to be accounted on the date of commercial invoice/ date of bill of lading/ date of bill of entry and accordingly which exchange rate to be recorded?
No advance payment has been made against the same. Capital item is purchased.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

19 August 2013 You should take rate mentioned as per bills of entry.

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 Should the date of recording the invoice in books be the same as bill of entry?
In my case, the date of commercial invoice falls in one accounting year and the date of bill of entry falls in another accounting year?
In which year do I account for the capital item purchased?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

19 August 2013 Yes usually that is procedure for accounting imports.

Ganeshbabu K

Ganeshbabu K (Expert)

19 August 2013 1)Accounting for import purchases:-

i)As per Accounting standard 9 and icai expert opinion...import purchases to be recognised on when all significant risks rewards transfered to you from supplier

So in case of FOB contracts: Purchase to be recognised on Bill of ladding

In case of CIF contracts: Purchases can be recognized on date of Bill of entry.So bill of entry is important and not the commercial invoice..for recognition creteria
.
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Just keep in view that recognition should be when all risks rewards transfered to your from supplier

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Ganeshbabu K

Ganeshbabu K (Expert)

19 August 2013 1)exchange rate available on Bill of entry/shipping bill can be taken for recognition of purchases .it is normal practise employed.

2)however you can also employ rate of exchange of RBI as on such date and can follow this accounting policy cnsistently

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