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(Guest)

Accounting entry for forex transaction

Thanks Aman. It's quite complicated, that's why I'm happy that my fx broker helps me with all tax questions. 

 it was very important for me when I started trading. 



 7 Replies

Durgesh Mourya

Durgesh Mourya   04 August 2019

If the Payment is directly received in Bank from Foreign. No other Party involved [except RBI]. Then their Charges are Correct, but they can take GST on their services.

For Entry purpose, you just give Bank Charges.

ITC applicable.

NOTE: THERE ARE MANY IRREGULARITY IN AUTHORITIES & ENTITIES. WHAT TO DO, EVEN BANKS ARE SOME TIME DID WRONG CALCULATIONS.

Sanjeev Kumar

Sanjeev Kumar (Company Secretary)     01 May 2020

@ anil

 

How you have deal with the situation

Kindly share your experience

ANIL

ANIL (Others)     01 May 2020

In purchase entry, we show taxable value and after this we reverse taxable entry by journal.

Aman Goyal

Aman Goyal (Finance Manager)     29 August 2020

the taxable value as stated by you is Rs 6534.17, that means the amount of foreign currency converted in INR is Rs 2034170/-,

the bank charges of Rs 6534.17 has been included in the amount of conversion as it is a consolidated amount being deducted from your bank account, it does not show up separately in the payment advice received from the bank. 

so the correct entry would be as follows

advance to supplier DR. 2027636 (2034170 - 6534)

to bank 2027636

(Being advance for import to supplier)

 

Bank charges Dr 6534

CGST 588

Sgst 588

to Bank 7710

(Being Bank Charges on foreign currency conversion and GST)

 

ANIL

ANIL (Others)     26 September 2020

Yes, i do the same !

ANIL

ANIL (Others)     26 September 2020

I do journal entry in Tally as under:-

Dr Bank charges Rs 500

Dr Input CGST 9% Rs 45

Dr Input SGST 9% Rs 45

Dr Input CSGT 9% on Forex Rs 535.74

Dr Input SGST 9% on Forex Rs 535.74

Cr Bank Rs 1661.48

 

 

Rujuta Hadkar

Rujuta Hadkar   19 January 2021

I am also facing same issue.

What about Taxable value of GST on forex?

Where u have booked it?

Please reply.

Thanks


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