banner_ad

Foreign exchange gain on doubtful sundry receivables

Tax queries 393 views 1 replies

Dear Sir,

Query:

Two Export invoices were raised to a party two years back for a  sum  of Rs.14 Crores which is doubtful of recovery.  Should be provide for foreign exchange fluctuation as on 31.3.2014?. If provided, there  will be foreign exchange gain of Rs.1.5Crores which results in income tax thereon .  The query is being raised whether to pay tax on unrealized foreign exchange gain though even the receivable itself in doubtful.

With Regards,

T.Baskaran

 

Replies (1)

If assessee follows accrual system of accounting then unrealised foreign exchange gain become taxable. But u may claim it as deduction in the year in which those debtors shown as actual bad debts in your P&L account.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details