IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT

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This query is : Resolved

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This discussion explains how to accurately pass an import purchase entry in accounting records. It details the initial entry, how to incorporate customs duties and IGST, and how to handle foreign exchange rate differences upon payment. The conversation also addresses whether customs duty should be transferred to the import purchase cost.

Viral

Viral (Querist)

05 October 2026 Dear Sir
Let me Know what is Purchase Entry Passed in Books of Account.

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

10 October 2026 To correctly pass an import purchase entry: Purchase Entry: Debit Purchase/Inventory and credit Foreign Creditor at the transaction exchange rate.Customs Entry: Debit Purchase/Inventory for non-creditable duties (BCD/Surcharges), debit Input IGST (Import) for the tax paid on the Bill of Entry, and credit Bank.Forex Adjustment: Adjust any exchange rate differences to the Exchange Loss/Gain Account upon payment remittance.

Viral

Viral (Querist)

12 October 2026 Dear Sir,
Thanks for your reply.
In above entries it may possible to Custom Duty Transfer to Import Purchase Cost.

Please advice.

Viral

Viral (Querist)

12 October 2026 Dear Sir,
Thanks for your reply.
In above entries it may possible to Custom Duty Transfer to Import Purchase Cost.

Please advice.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

30 October 2026 Yes, non-creditable duties like Basic Customs Duty (BCD) and surcharges must be added to the import purchase/inventory cost. Recoverable taxes like Input IGST must be debited to an Input Tax Credit account, not the purchase cost.

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