Applicable exchange for booking of imported materials, Accounting - Auditing

[Bhairob Chandra Bor]

Dear Exparts,

A) Facts: 1) we are importing Raw Materials from Japan on regular basis. 2) 2-3 three shipments are coming every month.2) Payment terms of that materials 120 days from the Bill of Lading date (usance Letter of Credit for 120 days). 4) Transit period from Japan to our factory, Gurgaon 30days approx. 5) We have taken the exchange rates from the RBI website at the time of making the Good Received Notes 6) We have not taken the exchange rates on Bill of Lading date. Though our shipments are on FOB basis.7) Rests of the accounting entries are followed as per AS11.

B) Queries: what rate should be considered at the time of making GRN, is it the rate on Bill of Lading Date or on gate entry date (Enter in our factory)?

Kindly advice

Regrds,

bcb

Posts / Replies

[Pradeep Khatri]

Dear Bharod,

You may consider Bill of Entry Rate for booking of import consignment in your books of accounts.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)