Disclosure of Exchange Difference on sale of Goods as per revised schedule VI

[Siraj Shaikh]

Dear Collegues,

 As per the revised schedule VI, the exchange difference on sale of goods be treated as part of Finance Cost or Other Expenses ?

[CAGOPALJI AGRAWAL]

Exchange difference attributable to borrowings costs can only partake the part of finance cost not otherwise like in the case of sale of goods.

AI Summary

Exchange differences from goods sales should not be classified as finance costs under revised Schedule VI rules. A participant inquired whether the exchange difference on the sale of goods should be classified as part of Finance Cost or Other Expenses according to the revised Schedule VI. A response clarified that exchange differences related to borrowing costs may be considered part of finance costs. However, this classification does not apply to exchange differences arising from the sale of goods, which should not be included under finance costs.