PLZ let me Conferm
Treatment of Foregin Exchange on Machinary purchased from outside india
in Co. ACt
in AS
in TAX
Also refer section .
3 Replies
ankit
(STUDENT)
(120 Points)
Replied 25 June 2008
the rate of exchange is taken at closing rate of the year ended
ashish gupta
( student)
(1922 Points)
Replied 25 June 2008
Dear Akhil
foreign exchange loss/profit is capitalised according to Sch VI of Co Act
According to Accountiing framework that has to be recognised as revenue expenditure as it is not providing any extra benefits.
According to Sec 43A of I Tax it is to be added or subtracted from the cost of the assets.
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