At what forex rate the import purchase should be recorded:
1.Rate which prevails on the date of invoice.
2.Rate which prevails on the date of Bill of entry.
3.Rate which prevails on the date of receipt of goods.
4.Or any other rate? 
Menu
Accounting for import purchases
Replies (1)
For Import Purchase
You should consider the rate applied in Bill of Entry. At the time of payment to the supplier please transfer the diference between Bank Rate and Bill of Entry rate in 'Exchange Rate Fluctuation A/c' .
If there is any advance payment made to supplier then you should consider exchange rate on which the Bank debited to your account. in this case no 'Exchange Rate Fluctuation' accounted
Rajesh
Recent Topics :
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
Related Topics :
CAclubindia
