24 July 2010
dear sir, How to calculate INR value of a foreign purchase bill? Which exchange rate is to be used, rate prevailing on bill of entry or date of payment?
Why do we do so? Any rule or notification in this regard?
As you asked for the calculation of INR Value of a Foreign Purchase Bill, I would like to say that this calculation should be done using the exchange rate prevailing on bill of entry and any difference between INR Value as calculated above and INR Value as calculated using exchange rate prevailing on date of payment should be trfd. to Profit/Loss Account on Exchange Rates which should again be trfd. to Profit & Loss A/c, i.e. Financial Statements.
29 July 2010
dear sir, How to calculate INR value of a foreign purchase bill? Which exchange rate is to be used, rate prevailing on bill of entry or date of payment?
Why do we do so? Any rule or notification in this regard?
CAclubindia
