TaxTMI 
TaxTMI 
TaxTMI 
| A Ltd. Co. made export sales in Financial Year 2013-14. Total 9 Invoices were raised. It is in receipt | |||||||||
| of duty drawback in respect of such export sales. It received duty drawback in respect of certain | |||||||||
| invoices in Financial Year 2013-14 and in respect of certain invoices received in Financial Year 2014-15. | |||||||||
| Query is :: | |||||||||
| The amount received as duty drawback in F.Y. 2014-15 in respect of invoices raised in F.Y. 2013-14 | |||||||||
| will be treated as income in F.Y. 2014-15 or will be booked as income recoverable in F.Y. 2013-14. | |||||||||
DUTYDRAWBACK
S.C. WADHWA
Duty drawback from 2013-14 exports should be booked as income in 2013-14, not when received in 2014-15. A company made export sales in the financial year 2013-14 and received duty drawback for these exports. Some of the duty drawback amounts were received in 2013-14, while others were received in 2014-15. The query is whether the duty drawback received in 2014-15 should be treated as income for that year or booked as income recoverable in 2013-14. The response suggests that the duty drawback should be booked as income in 2013-14, based on the shipping bill generated, regardless of when the amount was actually received. (AI Summary)