TaxTMI 
TaxTMI 
An automotive ancillary is exporting goods to USA. The customer to avoid 'Trump's tantrum tariff' has contracted with the supplier in India that goods will have to be delivered on his factory/ store gate on 'Delivered Duty Paid' inco terms. I seek the opinion of experts as to the time of recognition of revenue under Ind AS 115 by the supplier company located in India. If possible, a specific mention of the para no. would greatly help.
DDP sales - date of booking revenue
24 Jun 2026 
7 Replies 
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Control-based revenue recognition under Ind AS 115 in DDP exports turns on delivery terms and goods in transit disclosure.
Revenue from a DDP export arrangement is recognized under Ind AS 115 when control of the goods transfers to the customer, not merely when the goods are shipped from India. The contract terms must be examined using the indicators of control in paragraph 38, including title, payment, possession, risks and rewards, and customer acceptance. Where the seller retains responsibility for delivery, customs clearance, and import duties until the customer's premises, goods in transit should generally remain as Inventory, while contract liability arises only if consideration has been received or billed before transfer of control. (AI Summary)
Revenue from a DDP export arrangement is recognized under Ind AS 115 when control of the goods transfers to the customer, not merely when the goods are shipped from India. The contract terms must be examined using the indicators of control in paragraph 38, including title, payment, possession, risks and rewards, and customer acceptance. Where the seller retains responsibility for delivery, customs clearance, and import duties until the customer's premises, goods in transit should generally remain as Inventory, while contract liability arises only if consideration has been received or billed before transfer of control. (AI Summary)