Prathyusha reddy (CA Article Assistant) (178 Points)
19 April 2018Dear Experts,
Good Afternoon !!
my query is , Forex Fluctuation on repayment of FCTL Installments.
as per sec 43A of IT act, whether it should capitalised to assets OR debited to p&L a/c???
Sarath Rajendran
(Nil)
(2791 Points)
Replied 19 April 2018
Debited to P&L account if loss and vice versa
Prathyusha reddy
(CA Article Assistant)
(178 Points)
Replied 20 April 2018
Thanks Rajendra :)
But as per sec 43A, it is saying that if we barrowed any foreign currency term loan for the purpose of acquiring fixed assets. and at the time of repayment of term loans, if any fluctuation arises we can add or reduce from the assets.
can you check it please.
Thanks in advance :)
CAclubindia
