Dear Frnd,
I asked one query relating to Service tax.....
Suppose we raised invoice $110 including Service tax ($10) and accordingly paid to Govt on that date on accrual basis, suppose dollar price Rs 50 at that time and we paid Rs 500 to Govt.
After that when we received Payment from customer after 2 month than dollar price is Rs 45 .
My question is Rs 50 Service tax which we extra paid is it treated service tax input ? or apply AS-11 and tfd. to Foreign Exchange fluctutation as loss ....
As per my opinion we follow AS-11 and tfd to exchange fluctuation...but i ask your opinion regarding this query...
Kindly Revert back as soon as possible...
CAclubindia
