Exchange rate urgent ?

This query is : Resolved

uday singh Negi (Querist)
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15 November 2012 dear sir,
i have one query regarding booking of invoices if suppose we received some invoices from overseas party
suppose
date amount
5.10.2012 ( 1000 usd )
8.10.2012 ( 2000 usd )
exchange rate on that day suppose rs. 50 & 51 and suppose i forgot to book all the invoices on time and i booked on 2.11.2012 ( and suppose exchange rate was rs. 55/- on 2.11.2012)
so which exchange rate i used for conversion & why? invoice booking date i.e ( 2.11.2012 ) or the same rate on which invoice raised ( i.e 5.10 & 8.10.2012 )

expert pls reply thanks

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)
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16 November 2012 According to AS11 issued by ICAI, a foreign currency transaction shall be recorded, on initial recognition in
the functional currency, by applying to the foreign currency amount the
spot exchange rate between the functional currency and the foreign
currency at the date of the transaction.

The date of a transaction is the date on which the transaction first qualifies for
recognition in accordance with Accounting Standards. For practical reasons, a
rate that approximates the actual rate at the date of the transaction is often used,
for example, an average rate for a week or a month might be used for all
transactions in each foreign currency occurring during that period. However, if
exchange rates fluctuate significantly, the use of the average rate for a period is
inappropriate.

The transaction date represents the time at which ownership is transferred.

uday singh Negi

uday singh Negi (Querist)
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16 November 2012 nagraj sir

which rate i used, i have to file service tax return before 25th nov 2011

please help

thanks

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