Foreign exchange transaction-which rate to be used ??

This query is : Resolved

CA Abhishek Singh (Querist)
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18 January 2013 Hello everyone,

one of my client has purchased certain item from US for which he was billed $2500 on 06/12/2012

He made the payment of $2500/- through HDFC bank ltd on 15/12/2012@55.83.

My question :

Entry for purchase should be passed by applying which rate and from where we will ge t the rate and whether payment entry should be passed @55.83 ?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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18 January 2013 For Forex transactions, the exchange rate as per bill of entry for home consumption issued by Custom authorities is to be considered while booking the purchase entry.

The difference in remittance date and bill of entry date should be routed thro foreign exchange gain or loss account.

anurag

anurag (Expert)
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18 January 2013 @ Abhishek , If u dont mind, have u asked this question for academic purposes? because in real corporate life every one knowing the correct treatment.
BTW the treatment is same as suggested by above expert.
Thanks and Regards.

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