Purchase date and value in case of import (trading)

Hi Ashish

As per provisions of accounting, a product is deemed to be the property of transferee(buyer) when both possession and payment for the same has been made to transferer(seller). In your case the date on which balance payment is made should be taken as record date for Purchase of goods. As you have recieved the possession but the adequate consideration is made only after the product is there in INDIA, thats with customs. 

The exchange rate should be considered the rate on Date of Purchase. The diff should be recorded as 'Difference in Exchange Rate' which may be debit if rate increased or credit if rate decreased. 

Please clarify : "In your case the date on which balance payment is made should be taken as record date for Purchase of goods. As you have recieved the possession but the adequate consideration is made only after the product is there in INDIA, thats with customs. " 

Full payment is made against documents i.e. before the goods reach the Indian border.

"The exchange rate should be considered the rate on Date of Purchase." - Which rate, the rate at which we remit or RBI rate or customs rate ?