Treatment in case of advance amount taken from foreign buyer(debtors) in Dollers, Entries in the books.

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..... Treatment in case of advance amount taken from foreign buyer(debtors) in Dollers, Entries in the books.
Query (Issue) Started By: - Mahendra L Dated:- 11-1-2016 Last Reply Date:- 19-2-2016 Accounting - Auditing
Got 5 Replies
Companies Law
Dear Sir/Madam., In case of Export of goods(by the Indian seller) we received payment in advance (from the foreign Buyer) in Dollars.Can we take th .....

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..... is total advance amount received as sale value by converting in to Indian Rupees.on the date of sale. for avoiding foreign exchange gain/loss.What is the correct treatment.kindly suggest me with Accounting standard and New RBI Rules regarding foreign currency transactions. Thanking You., Regards., mahendra.L Reply By MARIAPPAN GOVINDARAJAN: The Reply: You yourself admitted as advance. Then h .....

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..... ow can it be accounted as sale value on the date of sales? Reply By Ganeshan Kalyani: The Reply: I agree with Mariappan Sir. the material movement and documentation with shipping too is a considering point to construe as sale. Reply By KASTURI SETHI: The Reply: Sh.MARIAPPAN GOVINDARAJAN Ji and Sh.Ganeshan Kalyani Ji, Dear Sirs, I have noted both of you often traced out answer from a query its .....

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..... elf. It is an art. I am thrilled with your replies to this query. At the same time I hope questioner will not mind it. Reply By YAGAY AND SUN: The Reply: Dear Mahendra, Please check following: * Indian Accounting Standard (Ind AS) 115,Revenue from Contracts with Customers; * Ind AS - 021 : The Effects of Changes in Foreign Exchange Rates * Para B.8 (Advance Payments against Exports) of Ma .....

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..... ster Direction - Export of Goods and Services issued by RBI on 01-01-2016. Advance payment against Exports will be reflected in FIRC, and FIRC would be converted into BRC at the time of balance sales proceeds as and when remitted by you counterpart. However, Foreign Exchange fluctuation would be accounted for as per the Ind AS 115. Please also discuss it with your CA to dig deeper or discuss it .....

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..... with your Authorized Dealer. May God Bless you! Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) Reply By Mahendra L: The Reply: Thank You Sir.,
Discussion Forum - Knowledge Sharing .....

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