what to do if individual is in receip of cheque in $

This query is : Resolved

sushil (Querist)
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07 November 2010 Dear All,

My one of t director of our company is in receipt of cheque in USD for $ 300.

this is in t form of refund / cash back for the amt spent in the USA in his personal journey. But exp spent have not been shown in the his expense statement nor reflected in the any bank statement.

My query is, what to do with this cheque.
whether to deposit in the bank a/c or what?

Thanks in advance.
Regards,
Sushil.

NITIN SHARMA

NITIN SHARMA (Expert)
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07 November 2010 In my openion u can deposite that cheque in bank a/c after making rectification entry as it is in the form of cash back and u did not claim any expenses against the expenses.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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08 November 2010 You can directly deposit your foreign currency cheques, foreign currency demand draft and Travellers Cheques in to your saving or current account. Bank will then have the cheques sent for collection and the funds will be credited to your account in Indian Rupees. Bank accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs.

venkatraman shrinivas

venkatraman shrinivas (Expert)
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08 November 2010 I agree with Mr.Shailesh Kumar in the matter of deposit of the cheque received in US $. As regards your accounting for the overseas expenses, you become accountable and explain before the tax authorities, if you are so confronted.

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