Pankaj Jangid (Director) (44 Points)
06 May 2011We have a Pvt. Ltd. company. Our client is Hungarian. Is it legal to raise invoice in their name (Hungarian Company) if we receive payments through Paypal?
How the different transactions be shown in balance sheet if we receive payment through paypal - (1) Payment by customer (2) conversion charged by Paypal (3) paypal transaction charges.
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Regards
Pankaj
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 06 May 2011
1) obtain Importer exporter code from DGFT
2) raise invoice ( separate series preferred for exports) in the currency of peyment.
3) payment accounted on the date of invoice would be based on conversion rate based on that day.
4) payment received in your bank account will be actual payment credited to buyer a/c, any charges debited by bank would be accounted for bank charges, any diff due to rate variation would be accounted as debit or credit in P/L account in head "forex difference on exports"
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