Exchange Rate for import of fixed asset

Others 3893 views 2 replies

Kartik

Articled Assisstant

30 Points Posted on 14 September 2009

Hi..

My client has made some capital import purchases. They have been shipped to India by sea through a transporter agent. Now a problem arises as to which date should be taken to capitalize the asset- the bill of entry date as passed by the customs department or the GRN date generated at the company's factory or the invoice date sent by the supplier. Also which one of the above dates should be taken as the base to fix the exchange rate in order to capitalize the above asset??

Pls help

Kartik

Replies (2)

Guest

Karthik, has this import been thru letter of credit or any such documents...if yes than the date of capitalization shud be bill of lading date..it wud be very rare where an import would have been done thru open credit operation try to check if bank is involved in it...rate of exchange and capitalisation in this case wud be bill of lading date..cz on receipt of bill of lading by the purchaser bank, the risk and the reward passes to the buyer...give me few more details ll surely help u out

Aniket Shavdia

Article Scrutiny department

49 Points Posted on 12 April 2011

Dear Mohan Sir,

I have the same query as posted by Karthikji.

The transaction in my case is through openeing of LC and also some other too. Can you please elaborate what would be those other documents other than LC.

Kindly reply to the above query soon as my client is in big trouble.