Exchange rate difference
This query is : Resolved
23 March 2011
I am a 100% Exporter. I sold my goods in foreign currency Euro. suppose I have sold some goods under export invoice of Euro 10000.00 on dt. 25.03.2010 but I have recd the the payment on dt. 25.05.2010 & on the realisation date Euro exchange rate was 1 Euro = 65 INR so how will I calculate my sale & what should I do with exchange rate diff. Pls explain according to Income tax act. Pls also send me the act reference with any illustration.
Thanks.
Thanks.
23 March 2011
I assume that the Risk releted to goods sold at the time of Sales Invoice (ie 25th March) So sales could be recognised on the same date's exchange rate.
On 31st march (Assuming Book Closure) diff between the 25th and 31st Exch rate is charged to P&L. The same treatment is to be given at the time of actual realisation. means exch. rate diff from 31st to 25th May is again charged to P&L.
I think the same treatment will be there in Income tax. It differs in case of Capital Assets purchase.
On 31st march (Assuming Book Closure) diff between the 25th and 31st Exch rate is charged to P&L. The same treatment is to be given at the time of actual realisation. means exch. rate diff from 31st to 25th May is again charged to P&L.
I think the same treatment will be there in Income tax. It differs in case of Capital Assets purchase.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- ASMT-10 received from A O
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- IT returns for fresh job holders
- ITR-Capital Gain
- Reporting in TDS return
- Traces submitting correction statement error
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
