Accrual of foreign revenue
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 May 2018
Hi,
One of my clients provides services to foreign entities and the rates are agreed at foreign rate.
While passing accrual entry whether it should be in local currency or foreign currency and then convert it into local currency.
Also if i am recording the accrual entry at foreign currency then while reversing it there will be a exchange fluctuation (even though it will be very minimal), what should be the treatment and also is the fluctuation which is notional in nature allowed as per the Income tax act.
please share relevant documents or references if possible.
One of my clients provides services to foreign entities and the rates are agreed at foreign rate.
While passing accrual entry whether it should be in local currency or foreign currency and then convert it into local currency.
Also if i am recording the accrual entry at foreign currency then while reversing it there will be a exchange fluctuation (even though it will be very minimal), what should be the treatment and also is the fluctuation which is notional in nature allowed as per the Income tax act.
please share relevant documents or references if possible.
28 May 2018
All the financial (including accrual) transactions should be record In INR by converting the FX at the exchange rate prevalent on the day of transaction, unless the different rate of conversion is required to be recognised as per the law applicable, e.g. GST
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 May 2018
Thanks !!!
So while reversing the accrual entries if the exchange rates are different, what would be the treatment for difference amount
So while reversing the accrual entries if the exchange rates are different, what would be the treatment for difference amount
28 May 2018
Reversal is required at the value at which you made the entry.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
