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Which exchange rate to be taken

Mudit (Article) (26 Points)

25 March 2020

we have purchased several items from US for $25000 and paid gst as well on there import... now please guide whether to record these items in india as per cbic exchange rate or accounting rate.
state relevant law and accounting standard for reference....
also if your answer is to take accounting rate while recording in books and cbic rate for gst purposes... then please guide how can we incorporate this difference in books

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 March 2020

Rate should be accountable as per customs clearance rate (at the time of clearance)...

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Mudit (Article) (26 Points)
Replied 25 March 2020

But what about as 11 which requires to record foreign transaction as per the ongoing exchange rates on that date

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 March 2020

Can't understand...

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 March 2020

For GST purpose goods rate of exchange shall be the same as notified by Board under Section 14 of the Customs Act (i.e. CBIC Rate) & In books of accounts the difference shall be reconciled & difference need to transfer under "Exchange Rate Difference"