charudatta (auditor) (191 Points)
17 June 2014A manufacturing company has purchased an imported machinery through Buyers credit (Foreign Loan).
What treatment should be given to the loss/gain arising out of exchange difference on repayment of Loan U/S 43A of Income Tax Act.
Please mention applicable case law.
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 17 June 2014
The exchange difference (relating to principal component) to be added / deducted to/from the WDV of the Asset as & when the principal is actually repaid ....further the same to be reported in Fixed Asset schedule of 3CD report...
no case law ...because the provision is very clear
charudatta
(auditor)
(191 Points)
Replied 19 June 2014
| Originally posted by : Saurabh Maheshwari | ||
 |
The exchange difference (relating to principal component) to be added / deducted to/from the WDV of the Asset as & when the principal is actually repaid ....further the same to be reported in Fixed Asset schedule of 3CD report... no case law ...because the provision is very clear |
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