Fx Rate.
This query is : Open
Guest
Guest
(Querist)
16 May 2011
Dear Experts.
Say someone purchased a capital asset (eg. shares) in a foreign country.
At what Fx rate is on required to pay tax on the profits realised, if the money is still in a banks in the US.
Example. Made a profit of $100. Now for paying tax, what FX rate in india will be used?
The cost of transferring the FX or closing rate?
Thank you for your time.
Say someone purchased a capital asset (eg. shares) in a foreign country.
At what Fx rate is on required to pay tax on the profits realised, if the money is still in a banks in the US.
Example. Made a profit of $100. Now for paying tax, what FX rate in india will be used?
The cost of transferring the FX or closing rate?
Thank you for your time.
17 May 2011
I think the foreign exchange rate on the date of credit of the income can be applied for the Receipts. The foreign exchange on the date of investment would have been already accounted at the time of investment. The difference can be the income on which tax is payable.
17 May 2011
Profit shoulde be recoginsed at the date of trasaction.as per IAS-21
18 May 2011
date of transaction
Guest
Guest
(Querist)
01 June 2011
Helps to buy the IT rules..
Rule 115A, deals with the above
Rule 115A, deals with the above
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