CONSIDERATION OF EXPORT IN BOOKS OF ACCOUNT

[SURYAKANT MITHBAVKAR]

We have passed shipping bill for export on 30th March 2015 and according to that we have cleared material for further export from our unit on 30th March 2015.

Now, that material will be shipped on 10th April 2015 and bill of lading issued date is 10th April 2015.

As per date of clearance from our unit is 31st March 2015, can we have book that export transaction in current fiancial year ie. 2014-15 or next financial year i.e. 2015-16.

Pl. advice.

[MUKUND THAKKAR]

sir,

yes you can book export sales in current financial year, only any benefit of export if you are obtain will be counting in next financial year.

AI Summary

Recognition of export sales: record sales when goods are cleared for export; related export benefits recognised when realised. If goods are cleared for export from the unit by the end of the financial year, the export sale may be recognised in that financial year even if shipment and bill of lading occur in the next year; export benefits or incentives are to be accounted for in the period in which they accrue or are realised and thus would be reflected in the subsequent financial year.