Hi friends,
We raise invoice to foreign comp,in turn money would be deposited into EEFC a/c in India
Suppose
we raise invoice on 01.05.11 - Exchange rate 45.89
Customer deposit the money directly into EEFC a/c on 01.06.11 - Exchange rate 45.00
We convert that foreign currency into indian currency on 8.06.11 - Exchange rate 46.00
Which date difference in exchange rate do we need to consider for calculating foriegn exchange gain or los?
Dear Varalakshmi,
Its profit, since you have raised invoice for Rs. 4589 and you will be receiving Rs.4600. You need to consider the gain arising out of the transaction.
Experts,
Correct me if I am wrong.
Keep smiling
Balaji
But I heard that it is the difference between date of invoice and date of deposit into EEFC a/c.
i.e it is loss...
Please clarify me
CAclubindia
