Short Realisation on Export Bills
This query is : Resolved
26 December 2008
Mr.A Exported Goods to US at 1500$ as invoice value. He made Forward Contract for 1500$ @ Rs.40 Per Dollar. Mr.A Discout that Bill with bank. But the Bill Realised only for 1400$. In this case bank recover loss of 100$ short realisation from Mr.A in what Exchange rate ?
06 January 2009
Mr.A can claim that Short Relisation as Foreign bank Charges but he has to account it in what Exchange rate.
27 August 2010
Forward cover and bank charges are 2 different things:
Mr. A has taken a forward cover of $1500 @ 40/$
Mr. A is bound by this cover
If Mr. A has in effect only $1400, then he can give this to bank and receive $1400 @ 40 Rs. 56,000, irrespective of the exchange rate at that date (It could be 42 or 37)
Now he is also bound to sell $1500 as per forward cover but could only sell $1400. The remaining $100, he will either have a profit (37) or loss (42) depending on what the exchange rate would be.
Pls revert is the answer is not satisfactory.
Mr. A has taken a forward cover of $1500 @ 40/$
Mr. A is bound by this cover
If Mr. A has in effect only $1400, then he can give this to bank and receive $1400 @ 40 Rs. 56,000, irrespective of the exchange rate at that date (It could be 42 or 37)
Now he is also bound to sell $1500 as per forward cover but could only sell $1400. The remaining $100, he will either have a profit (37) or loss (42) depending on what the exchange rate would be.
Pls revert is the answer is not satisfactory.
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
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Not able to file ITR
- Foreign inward in ITR
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
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
