can anybody suggest me the treatment of exchange difference arising on aquisition of asset from outside india under section 43A of income tax act.
and as well as how it differs from AS 11.
Sec. 43A is only relating to the foreign exchange rate fluctuation in respect of assets acquired from a country outside India by using foreign currency loans ( and not applicable to the indigenous assets acquired out of foreign currency loans. )
Hence, the Assesee has to bifurcate the foreign exchange fluctuation in respect of foreign currency loan used for assets acquired outside India and the indigenous assets and apply provisions of sec. 43A or AS-11(2003) accordingly.
CAclubindia
