TaxTMI 
TaxTMI 
Foreign exchange loss
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....oreign exchange loss<br> Query (Issue) Started By: - surendra joshi Dated:- 2-1-2008 Last Reply Date:- 15-1-2008 Income Tax<br>Got 1 Reply<br>Income Tax<br>A co. received advance in USD from its forei....
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....gn customer during the previous year. The said advance in reflected in the balance sheet ( Curr.Liab.) as Advance from customer. The said amount is credited in the bank account in INR. As on the date ....
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....of Balance Sheet,as a result of exchange fluctuations, the liability to the customer increases with devaluation in rupees. Whether such Exchange loss should be accounted in the books as on the date of....
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.... balance sheet and whether such exchange loss will be allowed as a revenue loss in the year of receipt. The said advance is cleared in the suceeding year by supply of material. Reply By Surender Gupt....
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....a: The Reply: For this purpose, you need to refer the Accounting Standard for revenue recognition and so.<br> Discussion Forum - Knowledge Sharing ....