Export accounting....urgent sir!!!
This query is : Resolved
11 January 2012
Dear Experts,
A company makes export sales.
To claim the benefit of removal of goods without excise duty they are filing ARE-1.
While accounting for the export sales they are not taking the rate in the RBI website as on the date of Bill of lading.
Instead they take the amount which has been specified in the customs website which will be provided for every month (only one rate for one month for example in case of jan 2012 it might be Rs.50 per US $).
1)Is it proper? Does this amount to compliance with the AS of ICAI?
2)After that discount the bills in the bank and the proceeds of that discounted bill is lesser than the rate means they transfer that amount to profit or loss on account of foreign exchange fluctuations.
I doubt the above 2 system is wrong.
Please explain me whether i am correct or not.
With regards,
Rajesh.
A company makes export sales.
To claim the benefit of removal of goods without excise duty they are filing ARE-1.
While accounting for the export sales they are not taking the rate in the RBI website as on the date of Bill of lading.
Instead they take the amount which has been specified in the customs website which will be provided for every month (only one rate for one month for example in case of jan 2012 it might be Rs.50 per US $).
1)Is it proper? Does this amount to compliance with the AS of ICAI?
2)After that discount the bills in the bank and the proceeds of that discounted bill is lesser than the rate means they transfer that amount to profit or loss on account of foreign exchange fluctuations.
I doubt the above 2 system is wrong.
Please explain me whether i am correct or not.
With regards,
Rajesh.
U S Sharma
(Expert)
12 January 2012
1) any published rate can be adopted.
2) yes the diff is accounted as forex difference.
2) yes the diff is accounted as forex difference.
RAMESH KUMAR VERMA
(Expert)
12 January 2012
if they apply for DEPB / DRAWBACK INCENTIVE FOREIGN CURRENCY WILL BE MULTIPLY WHICH IS MENTIONED IN SHIPPING BILL "ON LEO DATE"
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