Accounting treatment for booking advance on costs received from foreign subsidiary by indian parent

Revenue recognition in the books of subsidiary: It is treated as income as the advance on costs resembles consulting fees for arbitration. This is a separate performance obligation from performance obligation to sell actual services and goods. For this part, the transaction fee, is one part of income and should be recognised in the Subsidiary’s books if services are already rendered like your question mentions.

Bank a/c 100$

To Revenue a/c 100$

Then while consolidating at the year end, the revenue and cash (Current assets) should be Consolidated in the format of P+S and presented in both SPLOCI & SOFP. But, this treatment is valid only for transaction and the exchange rate will the rate at transaction date. Eg. 70₹/$ on the date of fee received from customer.

Remitting to Indian banks, bank charges will be applicable as bankers acceptance is required. 

100$*70=7000₹, similarly, all income statement items and balance sheet items will be translated to indian currency will be consolidated and the gain/loss will be presented in the Comprehensive Income statement if it is 100% holding. Or else, NCI part of gains and losses will Ben included.