When does the liability arise in respect of import of goods ? In case of goods delivered prior to the settlement of rates between the parties in agreement, then which rate shall be taken as the Purchase rate ?
In case of difference will it be treated as Exchange Rate Difference or Purchare Rate Difference.. ??
What is the provisional Entry & actual Entry ?
For Example:
on 1st apr X ltd purchsed goods worth $100 from Y ltd (exchange rate = Rs. 45 per $) on understanding with y ltd that ACTUAL PURCHASE PRICE will be fixed at a later date
on 2nd april X ltd sells those goods to Z ltd for $110 (exchange rate = Rs. 44.75)
on 3rd april Y ltd fixes purchase price as $102.5 (exchange rate = Rs. 44.80)
what entries will be posted for the above transactions??.
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