Professional Documents
Culture Documents
Once the Vessel is sailed we raise the Provisional Export Sales Invoice for 100% of
shipment value, it is stated in the invoice that 95% provisional Invoice valuehas to be
paid by party and the balance 5% is to be settled by the party on final analysis report at
destination port.
When vessel reaches the destination port, ore analysis is done by the party and reports are
send to us to raise the final invoice. Final Invoice is raised with 100% value, Less the
95% Provisional invoice value balance receivable / payable to party.
Vessel is completed
and sailed, the
account Dept.
receives hard copy of
Provisional Invoice
along
With requisition in FAS from Export Dept. The Provisional Invoice Shows 95% and 5% value of
Invoice in foreign Currency (US$), after verifying the correctness of the Invoice we convert the US$ in
INR 95% & 5% by applying exchange rate as on the Bill of Lading date.
The Entry in the FAS is:
INR 95% & 5% by applying exchange rate as on the Bill of Lading date.
The Entry in the FAS is:
2) After receiving 95% sale proceeds through our bank from party we
accounts the proceeds (only 95% realised in INR) the entries:
Debit to Bank
Credit to party
Debit to party
Credit to Exchange difference-Export
4)
On receipt of destination report the export dept raises the final Invoice, following entries are passed.
i) The 5% accounted as per Provisional invoice now being reversed ,
Debit to Sales
Credit to Party
ii) The Final Invoice is being accounted by appling exchange rate as on Bill of Lading date.
Debit to Party
Credit to Sales
5) After receiving final invoice proceeds through our bank from party we
accounts the proceeds (5% realised) the entries:
Debit to Bank
Credit to party
7) In case of contract where the rates are provisional and final rates are to determine based on the
month on arrive at destination port. In such cases many a times the final invoice is negative where
party by raising a credit note.
Note : 1) Base on Export Sales inputs the various Export related report are being
prepared for our various requirement (Format attached)
Copy of Provisional And Final Invoice is attached
(All Accounting entries in our Books are in Indian Rupees)
2) GST not applicable for Export Sale of I/Ore
3) Export Duty is not applicable for grade below 58%
4) From 01-04-2017 onward all Export Sales of I/Ore Shipments are on CFR FO Basis
(Cost Freight Free Out)
Salesof Iron ore to local customers base on the terms and condition of contract.
Invoice is being raised by Export Dept.
The Entry:
Debit to Party
Credit to Local Sale of Iron Ore
Credit to CGST A/c
Credit to SGST A/c
Credit to TCS A/c
B) Sale of Services :
Debit to Party
Credit to Truck Hire Receipts
Note : The Bill raised at TMS Module and Req. in FAS along with hard copy of signe
(Copy of Bill is Enclosed)
GST is not applicable if the value of per trip is below R.1500/-
The Entry:
Debit to Party
Credit to Hire Receipts
Credit to CGST
Credit to SGST
The Company does not own any barges however in case of composite services wherein the com
services to third parties, barges are hired by company from group entities for said services. The ra
Bill is being raised by our Export Dept.
The Entry
Debit to Party
Credit to Barge Hire Receipt
Note : The Barge Freight rate is as per Goa Mineral Ore Exporters Association
Transhipper Vishal Hira is used for Loading Foreign going Vessels given to VMSSI
and outside parties as per the agreed rate. The Export Dept. raises the bill.
Debit to Party
Credit to Transhipper Income
Credit to CGST Payble
Credit to CGST Payble
Other Income :
Interest Income:
Cash & Bank
Dividend Incime:
Investment Dept.
Asset Dept.
Proceeds from Rent Income
VMSB Flats/Houses given on Rent, every month Bills are raised as per the agreement. In case of ren
premises GST as applicable is charged.
entry
Debit to Party
Credit to Rent Income
Miscellaneous Income:
Miscellaneous Income includes:
Vehicle accidental Insuranceclaim
Sale of Scrap
Sale of Loan application forms
HSD, Stores & Spares parts are sold to scheme Trucks and Contractors and group Companies base
from Inventory dept. Necessary Invoice are raised by applying applicable taxes.
Sale of Assets
After receiving the approval CMD for sale of any company Asset, we are raising the Tax Invoice by
applyingapplicable rate of GST and accounted in the FAS