Recognition of Income
This query is : Resolved
06 June 2009
An exporte from Maharashtra dispatches goods under TAX INVOICE through a logistic contractor to Europe. The goods are stored in a godown in the city where the customer is located (i.e. in Europe) . The rent, insurance etc of the godown is paid by the exporter. The commercial invoice is prepared only when the goods are lifted by the customer from the godown. The payment terms are also based on Commercial Invoice. At what point of time the accounting of sale shall be made? Whether at the time of dispatch of goods from the exporters factory or at the time of Commercial Invoice.
Sumit gupta
(Expert)
07 June 2009
IT WILL DEPEND ON TERMS DECIDED BETWEEN PARTIES IT CAN NOT BE DECIDED UNLESS DECIDED BY PARTIES THAT WHEN THE EXPORTER IS DISCHARGED FROM ALL RISKS OF GOODS. AND WHEN THE RESPONSIBLITY OF EXPORTER IS COMPLETE SALE SHOULD BE BOOKED.
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