Foreign Excahnge
This query is : Resolved
Monil Shah
(Querist)
09 April 2008
Example:
Suppose i had booked an export invoice for $100 and get the remittance in $ only.In the year i get a remittance of $92 (Short is received due to deduction of bank charges by the foreign remitter bank) against the above export invoice. Now if i want to take the foriegn exchange fluctuation than what is the base price? Whether i have to take foreign exchange fluctuation on $100 or only on amount i had received ie $92.
Please excplain with the reason.
Suppose i had booked an export invoice for $100 and get the remittance in $ only.In the year i get a remittance of $92 (Short is received due to deduction of bank charges by the foreign remitter bank) against the above export invoice. Now if i want to take the foriegn exchange fluctuation than what is the base price? Whether i have to take foreign exchange fluctuation on $100 or only on amount i had received ie $92.
Please excplain with the reason.
09 April 2008
1 sale price =100$ *rate on the date of transaction.
2 amount received= 92$ * rate of realisation.
3 difference of above is exchange fluctuations.
2 amount received= 92$ * rate of realisation.
3 difference of above is exchange fluctuations.
S.Srinivasaraghavan
(Expert)
09 April 2008
If the short receipt is on account of bank charges, it should be accounted as bank charges only.
Therefore loss due to exchange fluctuation will be:
US $ 100*rate on the date of transaction)minus (US $ 100 * rate on the date of realisation)
Therefore loss due to exchange fluctuation will be:
US $ 100*rate on the date of transaction)minus (US $ 100 * rate on the date of realisation)
09 April 2008
FOREIGN EXH. FLUCTUATION IS WHAT IS BOOKED IN THE EXPORTERS BOOKS OF ACCOUNTS AS PER THE DIFFERENCE IN EXCHANGE RATE BETWEEN THE DATE OF TRANSACTION AND DATE OF REALISATION AS PER BANKERS STATEMENT MULTILIED BY THE VALUE OF TRANSACTION.
BANK CHARGES( IT IS CHARGED OFF AS EXP.IN ACCOUNTS OF EXPORTER) DO NOT MATTER WHILE CALCULATING FOR. EXH. FLUCTUATIONS.
R.V.RAO
BANK CHARGES( IT IS CHARGED OFF AS EXP.IN ACCOUNTS OF EXPORTER) DO NOT MATTER WHILE CALCULATING FOR. EXH. FLUCTUATIONS.
R.V.RAO
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