Import bill booking

Save Share

This query is : Resolved

Abhijit Kumbhar (Querist)
Follow

01 October 2013 can we book Bill of Entry for Import Purchase in Import party ledger is it correct. or we can book the Import purchase Bill which is given by party. please advice ...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

01 October 2013 u need to thake that figure which includes gross amount for purchase of imported goods.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

01 October 2013 Purchase entry can be made on date mentioned on bill of entry with amount provided by supplier in his invoice at a rate of exchange prevailing on date of bill of entry
.
.
As per AS9 Purchases should be recognised when all risks rewards and ownership transfered to your from your supplier

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 October 2013 AS 9 doesnt speak anything on purchase as it is on Revenue recognition and bills of entry must be taken for booking import purchases.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

02 October 2013 Dear Tushar Kindly refer to below ICAI Expert Commitee opinion

https://220.227.161.86/eac/eacfinal/vol22/3.htm

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

02 October 2013 There is no blind rule that import purchases are to be recognised at bill of entry
.
.
.
Import purchases are required to be recognised when all significant risks and rewards of the ownership pass on to the buyer provided condition of measurebability of the amount of consideration is satisfied

Accordingly date on which all significant risks and rewards of ownership FOB,CIF,AND EXWORKS contracts are transfered should be determined keeping in view terms and conditions of each contract.

So it would be as below

for FOB purchases it should be recognised on a date of bill of ladding as on that date all risks and rewards will transfered to you
.
.
in the simular way CIF purchases to be recognised on date of bill of entry

Gist of this conversation:--**

import purchases to be recognised on rate of exchange on a date of transaction(to be ascertained as above) for the amount of forreign currency mentioned in supplier invoice

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

02 October 2013
Further the difference between exchange rate as at date of transaction and as at date of settlement should be recognised as income or expence,or as an adjustment to carrying amount of related fixed assets depending on the nature of the item to which exchange difference pertain as per requirements of AS11

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

03 October 2013 Mr ganesh babu u have referred that AS-9 mentions about treatment of purchases where it has been mentioned???????

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now