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Recognition of import purchases

AS 2990 views 1 replies

Ganeshbabu K

Audit and Tax Advisory

48564 Points Joined May 2012

please let me know what exchange rate we have to use to book import purchases

customs exchange rate,or exchange rate on date of supplier invoice

at what date we have to recognise purchase,

date of bill of entry or supplier invoice date

Replies (1)

ANTONY EDGAR

CA in Practice

89 Points Joined June 2012

The accounting and the exchange rate for import depends upon on what basis you are importing the goods. i.e, is it on CIF,FOB etc. If its on CIF basis, the purchase has to be entered as per bill of entry date with the customs exchange rate. In case of FOB it has to be as per invoice date.

Basic logic is the entry has to be passed once the ownership and risk of the goods is passed on the buyer