30 September 2017
How to make entry in books of Accounts for Export & Import of goods & Services. Means which Exchange rate should be taken while passing Journal Entry. Anyone have notes on that. Then please help me.
Thanks in advance...
01 October 2017
The value of supply of services when purchasing or selling foreign currency, including money changing, shall be determined by the supplier of service in the following manner:-
1. For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) reference rate for that currency at that time, multiplied by the total units of currency.
For example, on 20th July 2017, Mr. A converted USD 100 into INR 6,200 (INR 62 per USD) through Akbar Travel Group. RBI’s reference rate for buying and selling was Rs. 61/61.5 respectively on such date. Now the value of supply will be: (62-61)*100 = INR 100
Thus the value of supply for Akbar Travel will be INR 100 and GST will be levied on this amount.
In cases where the RBI reference rate for a currency is not available, the value shall be 1% of the gross amount of Indian Rupees provided or received by the person changing the money.
In above example, if the reference rate is not available then 1% of INR 6,200 i.e INR 62 will be the value of supply of service.
2. If neither of the currencies exchanged is Indian Rupee, the value shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI.
For example, let’s assume that USD is converted against EURO. Now as per the above rule, both these currencies will be converted into INR terms and the value of supply will be 1% of the lesser amount.
Also at the option of the supplier of services, the value in relation to a supply of foreign currency, including money changing, shall be deemed to be:
(i) one per cent. of the gross amount of currency exchanged for an amount up to one lakh rupees, subject to a minimum amount of two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand rupees and one-tenth of a percent of the gross amount of currency exchanged for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees
However, once opted, this option cannot be withdrawn during the remainder of the financial year.
01 October 2017
For import
currency exchange rate is mentioned on BOE
For export
Custom exchange rate for that particular date is available on forex site that are normally valid for month and are taken as base value for day of export.
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