24 December 2011
Dear Members First of all I would like to wish you all a merry christmas and a Happy New Year.
As I have remitted Rupees 40 Lacs (approximately) excluding banks commission for making investment in a Company incorporated outside india other than Foreign Company as per Companies Act, 1956 but the company will issue me Shares of 75000 USD so what will be my cost of investment. I mean what amount to be capitalised.
your question is with regard to income tax or accounts?
assuming it is for accounts. you have to follow accounting standard 11 which states that the exchange rate prevaling on the date of transaction being effected should be considered for recording the cost.
CAclubindia
