payments in case of import

Ramkrishna (Accountant) (325 Points)

10 May 2007  
If importer is of indian origin and Mr. X  has purchased from him on HIGHSEAS Basis , Case - I - Mr. X  is paying in INR to impoter / Case - II Mr. X is paying directly to foreign seller in USD or other currency. Your view on the treatment in" notes of accounts" for  both the cases is appreciated .

others :

1. In case II - If Mr. X was to give the importer Rs. 5500 INR on invoice ( purchase price of importer was USD$ 10 - INR 5000 CIF at certain exchange rate + 500 comm. ) . At the time of payment ( without having  LIBOR fixation ) in consideration for 10 USD Mr. X  has to pay  5500 INR. Is any money payable to impoter now.  
2. If expenditure on money transfer  in case is borne by Mr. X , can the expenses  will be allowed in his books.