Rate for export sale
This query is : Resolved
22 November 2012
Pls tell me what rate should be taken when export sale booked in account .
pls also tell whether should be prefer TT buying rate for booking of export sale?
pls also tell whether should be prefer TT buying rate for booking of export sale?
23 November 2012
The exchange rate shall be applied on the date of your invoice date or date of supplies. Generally the date of supplies and date of Invoice is one and same.
19 July 2025
1. VAT / Sales Tax Rate on Export Sales
Exports are generally zero-rated for VAT/Sales Tax purposes in most countries, including India.
This means no VAT is charged on export sales, but exporters can claim input tax credit on the inputs used to manufacture the exported goods.
So, the VAT rate applicable on export sales is 0%.
2. Booking Export Sales in Accounts — Exchange Rate to Use
When export sales are booked in the accounting books, the amount is usually converted into the local currency (INR for India, for example).
Regarding which exchange rate to use:
TT Buying Rate:
TT (Telegraphic Transfer) buying rate is the rate at which the bank buys foreign currency from you.
For exporters, since they receive foreign currency, they sell foreign currency to the bank and hence the TT buying rate is appropriate for converting foreign currency into local currency when booking sales.
Therefore, it is common and acceptable to use the TT Buying Rate on the date of receipt or date of invoice (depending on accounting policy) for recording export sales in local currency.
Exports are generally zero-rated for VAT/Sales Tax purposes in most countries, including India.
This means no VAT is charged on export sales, but exporters can claim input tax credit on the inputs used to manufacture the exported goods.
So, the VAT rate applicable on export sales is 0%.
2. Booking Export Sales in Accounts — Exchange Rate to Use
When export sales are booked in the accounting books, the amount is usually converted into the local currency (INR for India, for example).
Regarding which exchange rate to use:
TT Buying Rate:
TT (Telegraphic Transfer) buying rate is the rate at which the bank buys foreign currency from you.
For exporters, since they receive foreign currency, they sell foreign currency to the bank and hence the TT buying rate is appropriate for converting foreign currency into local currency when booking sales.
Therefore, it is common and acceptable to use the TT Buying Rate on the date of receipt or date of invoice (depending on accounting policy) for recording export sales in local currency.
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