Foreign exchange loss on fixed assets
This query is : Resolved
Saurabh Garg
(Querist)
25 June 2014
Sir,
Fixed assets has been imported from outside India on loan from an Indian bank at an agreed price.
Although on completion of loan due to fluctuation in currency rate Indian bank has to paid more to foreign party.
Now the Indian bank has asked us for the excess payment which he has paid to foreign party.
So how the excess payment paid by us to bank to be accounted in the books?
Should the value of original asset be increased or what to be done...?
Kindly direct how to account.
Fixed assets has been imported from outside India on loan from an Indian bank at an agreed price.
Although on completion of loan due to fluctuation in currency rate Indian bank has to paid more to foreign party.
Now the Indian bank has asked us for the excess payment which he has paid to foreign party.
So how the excess payment paid by us to bank to be accounted in the books?
Should the value of original asset be increased or what to be done...?
Kindly direct how to account.
Rupesh Jain
(Expert)
25 June 2014
Loss of foreign exchange will capitalized in particular assets.
Saurabh Garg
(Querist)
25 June 2014
thank you sir
Would it make any difference if loss is spread in 3 years.
Would it make any difference if loss is spread in 3 years.
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 Amount transferred in HUF Account
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- Intimation under section 245
- GSTR-9C filing
- GST input credit on commercial property
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
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
