23 May 2014
Will there be any exchange gain/loss in import purchase if I have paid the amount in advance?
eg. Suppose I have paid 100$ at Rs.60 in advance, and at the time of invoice the exchange rate is Rs 65 per $. Now at what exchange rate should I book my invoice? Whether @ Rs 60, resulting in no loss/gain as the amount is already paid, or at Rs 65 resulting in exchange loss, as my liability incurred at Rs 65/ dollar rate.
CAclubindia
