Forex Loss / Gain

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Rama Rao Talluri (Querist)
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14 May 2011 Dear Friends
Can anybody clafy this?
We had opended a site L/c on 01st May 2011 for importing a machinery. On 1st July 2011, we received documents and we paid an amount of USD 1300000 @ Rs. 46/-. On 31st July 2011, the machinery was installed and capitalised in the books @Rs.47. Whether it is proper to calculate the Exchange difference between Rs.47 and Rs.46?Else we need to consider date of shipment date or Date of Bill of Entry or any other date?

In another case, we have availed Buyers Credit on 01July 2011 for One year. On 30th June 2012 we have paid Buyer's Credit @ Rs. 46/-. How the Exchange differences should be considered?

KUMAR SAGAR

KUMAR SAGAR (Querist)
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14 May 2011 one of my client is doing the business of cargo services but in fact he is charging the frieght with service tax as it is charged by Airlines and pass on total amount to Airlines and for that Airlines provide him an Income in the name of Rebate & Discount.
My question is that is my client is liable to show the total amount collected and paid to airlines in his Service tax return and secondly he can charge service tax on Rebate & Discount?
or he should file his return as NIL return.

U S Sharma

U S Sharma (Expert)
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16 May 2011 @ Rama Rao

check your dates mentioned, with such dates the query is not proper, please repost with correct data.

@ Kumar Sagar

What about service tax charged by Airlines?
if airlines is charging service tax then he is entitled to take credit and adjust the same in output.

if airlines is not charging any service tax then he has to pay full tax in cash

if airlines is issuing bills in the party name ( B.L or C/N) then he has to surrender his service tax registration, as its not needed for direct bill in favor of party by airlines.