foreign remittance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011 let: i have done foreign remittance $5000.00 @ Rs.45.00, but average rate for whole day 45.50, and bank show in tt copy $5000.00 @Rs.45.00= Rs.225000.00 and Service Charges Rs.1000.00, but average rate for particular date Rs.45.50 so how to entry in our book.which on rate take for foreign remittance Rs.45.00 or Rs.45.50.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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07 February 2011
If you have deducted Tax on foreign remittance. In that case,

You should record the transaction in the books at the rate at which Tax deducted and paid and any difference with money remitted should be debited/credited to fifference in foreign exchange

If no Tax deducted

You should record the transaction in the books at the rate at which bank remitted money.