recognition of export benefits

This query is : Resolved

vineet (Querist)
Follow

07 September 2007 A company has received export benefits under Duty Exemption Pass Book Scheme (DEPB) against export made by it .The co. is following the policy of recognising it as and when DEPB credit is received by the company.whether it is right?or it is against the accrual principle,acc.to which export benefits should be recognised as soon as export is made by the company rather than when credit is received by the co.please clarify the same on the basis of relevant AS,guidance note etc.

SUBRAMANIA SARMA G

SUBRAMANIA SARMA G (Expert)
Follow

08 September 2007 The Policy followed by the company is not appropriate and is not in line with the AS 9, revenue recognition and also in line with sec 209 of the Companies Act, 1956. The company should recognise the DEPB credit immediately the right to the benefit is accrued to it and in case there is any indication that the recoverablity is doubtful, the same may be postponed in line with AS 9

CA.P. ARUMUGARAJ, ACA

CA.P. ARUMUGARAJ, ACA (Expert)
Follow

10 September 2007 As per AS-9, if there is any uncertainty attached to the receipt then the recognition of revenue may be postponed. As per the concept of prudence, account for known losses not for gains..

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rajat Khandelwal

Rajesh Surapaneni

Shailesh Prajapati

Santosh Behera

Michael & Co.

Subscribe Now

recognition of export benefits

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

Manager- Finance and Compliance

Accountant

GST CONSULTANT

Senior Executive