Exporting company.

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sadhik (Querist)

20 October 2009 What things should be in mind related with the acounting of an exporting company which made only one shipment.

have any special registration procedure for export company ??

how can account a subsidy in the form of import licence which is not needful to the company and can sell the same with a broakerage.

Thanks in advance for your useful reply.

Thank you.

Pankaj K Gupta

Pankaj K Gupta (Expert)

21 October 2009 If it is a trading firm with only one Export shipment and there are other domestic sales, then Schedule VI disclosure requirement of Companies Act be kept in mind. Also, fluctuation norms and accounting of Foreign Exchange rate (FER) fluctuations has to be directly accounted i.e. FER at which material is sent and billed and FER on which payment is received. This differrence is to be shown seperately in Accounts as such, not as part of sale proceeds.
Registrations of IEC Code and relevant Export Promotion Councils must be obtained.
If there is any subsidy in the form of tradeable Import Licences, then Accounting policy may be drafted to treat it as Stock in Trade and valued at lower of cost or net realisable value.

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sadhik

sadhik (Querist)

07 April 2010 sir i have one more about export undertaking.

whether an exporting sole proprietor will get exemption u/s 10B if he collects material products , process and made shipment to abroad. It is the matter that the concern was not situated in FTZ,EPZ,SEZ etc. He already has IEC code.

Thanking Your Useful reply.

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