Treatment of Import of Goods in transit

[ravichandran maraiyan]

One of my clients import materials, say the import takes place during the month of March and my client receive materials during April-May. It is under Ex-works basis. When they get title of ownership? In which month sales tax return the transaction will be included? What are accounting entries? Please clarify.

AI Summary

Timing for Sales Tax on Imported Goods: Recognize Ownership Upon Receipt and Record in GRN for Accurate Reporting. A client inquires about the appropriate timing for recognizing the title of ownership and reporting sales tax for imported goods received in April-May, though imported in March. The response clarifies that ownership is obtained when the goods are received at the factory and recorded in the Goods Receipt Note (GRN). Consequently, the transaction should be included in the sales tax return for the month in which it is recorded in the company's books.