Q. Query relating to clearing and forwarding agent

Question

Our client is in business of freight forwarding and is registered with IATA/FIATA for air freight and with DGFT for sea frieght. They have a well connected worldwide network and an excellent relationship with major international airlines and shipping lines which enables them to provide a host of services to clients: Export consolidation air and sea Pre-shipping documentation Inland transportation Custom clearance Post-shipping documentation Port/Airport to door delivery Pre-import consultancy to new projects and approvals Inland transportation Custom clearance Consolidation air/sea Port/Airport to door delivery Our query was re: accounting of revenue by freight forwarders. Should the P/L a/c reflect the turnover gross of freight, local airport/port charges, transport charges charged by the company to its clients? Or should we only reflect only their service charges and profit made on recoveries of freight/local transport etc. Kindly advise w.r.t AS-9 and the usual practice followed in India.