When MEIS Duty Scrip received on Export is considered as income:
1. At the time of Export.
2. At the time of Receipt of Certificate
3. At the time of sale of MEIS scrip.
Scenario:
I have Exported Agricultural goods to X Co. in Dubai on 20/03/2020 and received MEIS scrip Certificate on 02/04/2020 and sold the same Certificate to A Enterprise on 05/04/2020.
Now when and i have to record this transaction in my books (what is the proper Accounting entry as per the rules)?
Thank You in Advance, your advice is valuable.
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MEIS Duty Scrip Accounting
Replies (3)
MEIS Certificate to be accounted at the time of application with the authorities. The sane shall be valued at its Net realisable value on the balance sheet date.
Thank You @ Raj C Doshi, your reply is appreciated. Could you please tell me that how we record it in our books in actual.
As far as what i have understood is At the time of application we will record it as Incentive income Account dr to Receivable ac. and when we will sell it the entry would be Receivable Ac dr to Sale ac. But this will create double income in the books. Is this right and if wrong please suggest me how to record it properly?
As far as what i have understood is At the time of application we will record it as Incentive income Account dr to Receivable ac. and when we will sell it the entry would be Receivable Ac dr to Sale ac. But this will create double income in the books. Is this right and if wrong please suggest me how to record it properly?
In case your application is submitted before March end ( certificate and sale in next year) , then directly add it in the value of your closing stock at Net realisable value. No entry. Just Directly into the closing stock value as Stock of Licenses
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