TaxTMI 
TaxTMI 
TaxTMI 
Treatment of loss due to foreign exchange fluctuations
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....reatment of loss due to foreign exchange fluctuations<br> Query (Issue) Started By: - Sanjeev Sharma Dated:- 17-9-2009 Last Reply Date:- 24-9-2009 Income Tax<br>Got 4 Replies<br>Income Tax<br>There was a loss on account of Foreign Exchange Fluctations on restatement of Foreign currency loan taken for purchase of Land, Building and Machinery ( indegenous) for a manufacturing project. How will it b....
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....e treated in Income tax ?? Reply By Rama Krishana: The Reply: I am not an expert but wish you to put your views and understanding first so that the same may be discussed further. Reply By Sanjeev Sharma: The Reply: Perplexed at your comments. I find nothing in Income tax Act which applies to this situation. Sec 43A also does not apply to this, being indegenous machinery. I had a problem and that....
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.... is the reason for this query. If you know, I would appreciate your reply to the query. Reply By Rama Krishana: The Reply: I hope your issue would be solved with the help of Supreme Court decision reported in 2009 -TMI - 32906 - SUPREME COURT - in this case, supreme court has allowed the deduction on account of foreign exchange fluctuation. In this case, a detailed discussion on cost u/s 43A has....
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.... been made and reasoned decision has been delivered. Reply By Sanjeev Sharma: The Reply: You mean Woodworth case. That does not apply to this situation.It says loss on account of revenue a/c and on account of capital a/c. Loss on account of revenue a/c is allowed as an expense. We have loss on account of capital a/c. In 43A situation, it is capitalised. In non 43A situation, will it be entirely....
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.... disallowed ??<br> Discussion Forum - Knowledge Sharing ....