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Accounting entry in case of bank charges involving forex transaction

ANIL (Others) (199 Points)

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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10 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 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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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 07 September 2018

Is bank charge any conversation charges or not...?

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 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.

NAGESWARAN (ACCOUNTANT) (834 Points)
Replied 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.

2 Like

ANIL (Others) (199 Points)
Replied 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 !