Exchange Rate to be Used

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Sanjay Govil (Querist)
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28 April 2008 Hi

When accounting for export sale (say converting USD into INR), which exchange rate should be used?

Should the customs notified rate for exports for the month be used, or should the bank selling rate be used?

This is important because for a particular date the customs notified rate and the bank rate may be different and also the exchange rate fluctuation to be accounted for at the time of inward remittance will vary.

Thanks

CA. Vineet Grover

CA. Vineet Grover (Expert)
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29 April 2008 HI Sanjay,

For accounting for export sale the foreign exchange rate shall be the TT Selling rate as on the date the custom invoice is raised.

On final remittance from the customer, the exchange fluctuation entry shall be passed.

rgds/
vineet

Sanjay Govil

Sanjay Govil (Querist)
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30 April 2008 Dear Mr. Grover

Thank you for your reply.

However, I am a little confused, shouldn't it be TT buying rate in the case of exports?

Regards

Sanjay

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