Dear All!
Please help me!
Transaction: Sent PayPal invoice to client 30th March, 2012. Client paid the invoice in full on 30th March, 2012 ( Same date ). Money transferred to Bank account in India on 30th March, 2012 (Same Date ). But, PayPal sent the money on 4th April, 2012.
Questions:
1. For the above transation will the tax be paid in FY 2011-12 OR FY 2012-13?
2. PayPal's currency conversion rates are always less than RBI's reference rates. So,
A. Can I make entries with PayPal currency conversion rates?
OR
B. Will I have to use RBI's reference rates for that day? If yes, then can I show money loss in currency conversion in indirect expenses?
Please help!
CAclubindia
