Value to be filled in return

[BAL KRISHAN GARG]

A HAS MADE SALE AS EXPORT FIRST TIME AND MENTIONED THE DOLLAR VALUE IN THE INVOICE . MY QUERRY IS WHETHER THE DOLLAR RATE ON THE DATE OF INVOICE FOR SALE PURPOSE WILL BE TAKEN IN THE SALES TAX RETURN ? BY MULTIPLING THE DOLLAR RATE ON THE INVOICE DATE IN TERMS OF RUPEES VALUE .

[Mukesh Kumar]

Yes, how can a person predict the future rate of a currency. The value of the invoice prepared in foreign currency should be converted in INR at the prevailing rate of foreign exchange (Dollar) as on the date of preparation of Invoice.

It is advisable to book your export in terms of notification issued by the Central Government for the purpose of Import and Export. The Central Government issue the monthly notification where the Exchange rate for the purpose of Import and Export has been fixed for a month. If you book your export on the basis exchange rates mentioned in these notification then the FOB value mentioned in the Shipping Bill will be equal to the value mentioned in your Books of accounts. Regards Pradeep Khatri [email protected] Consultant - Indirect Taxation

It is advisable to book your export in terms of notification issued by the Central Government for the purpose of Import and Export. The Central Government issue the monthly notification where the Exchange rate for the purpose of Import and Export has been fixed for a month. If you book your export on the basis exchange rates mentioned in these notification then the FOB value mentioned in the Shipping Bill will be equal to the value mentioned in your Books of accounts. Regards Pradeep Khatri [email protected] Consultant - Indirect Taxation

AI Summary

Exchange rate for export valuation: convert foreign currency invoices at invoice-date rate or use monthly government export rate.
Export sales invoiced in foreign currency should be converted into rupees for VAT/Sales Tax returns using the prevailing exchange rate on the invoice date; alternatively, exporters may adopt the Central Government's monthly notified exchange rate for import and export so that the FOB value in the Shipping Bill matches the value in accounting records.