Accounting entry in case of bank charges involving forex transaction

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Others
202 Points Posted on 07 September 2018

Hi Experts,

Upon realisatin of export proceeds, our bank have charged as under:

Cr. bank commission...........................     250

Cr SGST on bank commission.............    22.50

Cr CGST on bank commission............     22.50

Cr SGST on forex conversation                563  (on Rs 1753180)

Cr CGST on forex conversation                563 (on Rs 1753180)

How do i make this entry in Tally especially for forex conversation charges? 

Thanks !

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On 07 September 2018 at 18:07 Report
Replies (10)
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Student
3193 Points Posted on 07 September 2018
There is no such issue you can make JV or through purchase entry and in return do accept as it is.
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On 07 September 2018 at 18:22
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"Do the Right Thing...!!!"
128162 Points Posted on 07 September 2018
Is bank charge any conversation charges or not...?
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On 07 September 2018 at 18:55
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Student
3193 Points Posted on 07 September 2018
If they have deducted single amount then please ask for the invoice raised by the bank and please don’t forget to provide your GSTIN to bank, if not provided till now.
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On 07 September 2018 at 19:09
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ACCOUNTANT
834 Points Posted on 07 September 2018
Most of the bank will not issue tax invoice. If u submit your GSTN then these GST amt will reflect GSTR2A. You can see the same in GSTR2A view report

Entry made thru Jr vr or payment vr

DR bank charges
Dr CGST
Dr SGST
Cr Bank a/c.
Pls dont forget to enter the GSTN of the bank account.

This will reflect in Gstr2.
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On 07 September 2018 at 19:55
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Others
202 Points Posted on 08 September 2018

Thanks for your responses. 

In GSTR return we need to mention total value & taxable value. In this case, how to relect this entry in voucher please ? As per my above statement, Rs 250 is charged as bank commission and SGST & CGST is charged on it @ 9-9% which is OK but how to show and adjust Taxable value of Forex conversion charges? 

Thanks !

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On 08 September 2018 at 09:43
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Student
3193 Points Posted on 08 September 2018
You can find the values from invoice raised by bank, So, please collect the same from bank, or do reverse calculation on the same.
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On 08 September 2018 at 10:13
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Others
202 Points Posted on 08 September 2018

Hi Rohit, Thanks for your reply.

Taxable value on foreign conversion is known to me. Can you please explain as to how to do reverse calculation. I am using Tally.

Thanks !

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On 08 September 2018 at 10:36
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Student
3193 Points Posted on 08 September 2018
6,256 is your conversion charge, deduct the same separately and charge 18% on the same
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On 08 September 2018 at 11:20
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Others
202 Points Posted on 08 September 2018

Thanks Rohit !

How to reverse 6256 as this not an expense ?

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On 08 September 2018 at 12:20
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Student
3193 Points Posted on 08 September 2018
Exchange charges is the expense for currency conversion
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On 08 September 2018 at 12:28

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