Import purchase

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This query is : Resolved

Vidya (Querist)

04 November 2009 Hi

I have one query regarding import of goods.

When we import gooods which amount should be considered as purchase amount
1) Assessable value as per Bill of Entry
2) Invoice value of supplier

If we consider Assessable value as basic purchase amount then calculation of excise duty and other taxes becomes easy, but while making the payment to supplier we cannot consider assessable value we have to consider Invoice value of supplier.

Kindly clarify which value will be considered as basic purchase price.

If assessable value has been considered as basic purchase price and tax calculated (VAT/CST) on that amount is it the correct method or this has to be rectified?
What entries should be passed inorder to reflect invoice value of supplier as purchase amount?

Kindly clarify at the earliest since this clarification is required ASAP.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

04 November 2009 Import is to be accounted on the invoice value. When payment is made, difference,if any, between amount booked and paid may be booked in exchange difference account.

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