Artical Assistant
166 Points
Posted on 12 April 2012
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Originally posted by : CA Sachin Rastogi |
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Yes, it is a monetary asset and needs to be revalued at 31-3-2011 in X limited standalone books and exchange difference on this revaluation should be booked in income statement.
On consolidation with Singaporean subsidiary the loan balance will be eliminated.
Let me know if you have any other querries. |
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But Sir,
what will be taxation Impact - $ rate at yr ending is approx Rs. 50 and it purchase it at Rs. 44.
Now my gain due to exchage difference will be 6* $ 2000000. Does it fair to pay Tax on non-cash income of Rs. 1,20,00,000. My income Tax due to above will be Aprrox. 36.72 lacs. Is there any benefit if dallar rate come down to Rs. 40.