Mahendra Tukaram Chodankar (Accountant) (67 Points)
16 November 2011Hi
Can a foriegn exchange entry of sale and purchase could be set off in the books of account, if the export or import is done from the same party.
For eg.
A has imported goods 'd' from B for 100$ and subsequently
A has exported goods 'c' to B for 150$.
can A set off 100$ against the payment to be made to B and B would transfer only 50$ to A's account
Regards
Mahendra
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 21 November 2011
Mahendra Tukaram Chodankar
(Accountant)
(67 Points)
Replied 21 November 2011
Can u'll guide me on the documentation part
regards
mahendra
Z
( )
(2965 Points)
Replied 21 November 2011
Also consider the provisions of AS-11
Say on 20-11-11 A has imported goods 'd' from B for 100$
Check the exchange rate , for example 48 rupees = 1 $
Then pass
Purchases 4800
to B 4800
Suppose A has exported goods 'c' to B for 150$ on 21-11-11 ,check exchange rate (assuming 47 rupees= 1 $)
B 7050
to sales 7050
The difference between the exchange rates should be disclosed in P&L A/c
In the given case there is gain of 1 rupees on 1$ , therefore gain is 100x1 =100 rupees
Suppose when the balance money is given (for eg. on 30-12-11 and exchange rate is 46 rupees per $)
then there is loss of 1 rupees per $ , therefore loss is 50x1 =50
Net effect is gain of 50 rupees and same should be disclosed in P&L
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
