Income tax & accounting
This query is : Resolved
18 October 2013
Hello to everyone
one of my client is dealing in chemical business
he imports goods on CIF basis and enters into a high sea sales agreement.
My query is what should be the date of purchase?
at present he considers, purchases and sales on the date of entering into high sea sales agreement.
can he book the purchase on the date when goods were shipped/ commercial invoice date?
secondly, the ownership is transferred without taking delivery of the goods. does this amount to speculation as per IT Act??
one of my client is dealing in chemical business
he imports goods on CIF basis and enters into a high sea sales agreement.
My query is what should be the date of purchase?
at present he considers, purchases and sales on the date of entering into high sea sales agreement.
can he book the purchase on the date when goods were shipped/ commercial invoice date?
secondly, the ownership is transferred without taking delivery of the goods. does this amount to speculation as per IT Act??
18 October 2013
CIF Imports can be recognizein our books on date of bill of entry,i mean you need to recognize when all risks and rewards of ownership transfer to you from your buyer
.
.
generally it will be on date of bill of entry
.
.
however from that date to till the date of inward to our factory gate it is treated as Goods -in-Transit
.
.
generally it will be on date of bill of entry
.
.
however from that date to till the date of inward to our factory gate it is treated as Goods -in-Transit
18 October 2013
Exports also can be recognized when all significant risks and rewards of ownership transfer from you to buyer
.
.
So decide on date of recognition same as above
.
.
So decide on date of recognition same as above
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Selecting Tax Regime while for calculating tax relief on under Section89 of income tax act 1961.
- Cloud service
- Applicability of RCM on Frieght Inward supplies received from un-registered person
- GST on Fresh Juice Center(Sugarcane)
- Conversion of Pvt Ltd Company to a LLP
- GST ON FOREIGN CLIENT
- Can we issue an invoice today
- SALE OF GOODS FROM OTHER STATE
- Sale of Gold ornaments
- Running non ac bus under contract with roadways
- Relief Calculation u/s 89 of ITax 1961 in TableA Form10E
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
