Question ID :
39248
Exchange Rate for Expenditure incurred in foreign currency
Hello Professional Colleagues,
Can you please guide me on which exchange rate is to be considered in income tax for expenditure incurred in foreign currency and also paid in foreign currency through EEFC account? (Which exchange rate is to be considered in Books of account for booking the Expenditure in INR?)
Posted by
Manisha
on
Jun 26, 2019
Filed Under
DIRECT TAXES
for initial recognition - rate on the date of transaction. Conversion at the year - closing rate. Exchange difference - income or expense. Refer ICDS VI.
Posted by
CA PRADEEP C B on
Jun 27, 2019
Answer ID :
78971
the rate prevailing on the dateof remittance.
Posted by
CA. VENKITARAMAN K V on
Jul 01, 2019