Since section 43A is applicable for a foreign currency liability in respect of an asset acquired from a country outside India, then how the exchange difference is recognised in case of a foreign currency liability for purchase of an asset in India.

Foreign Currency Liabilities in India: Section 43A Exclusion, ICDS VI Guidelines for Asset Purchases and Monetary Items.

When a foreign currency liability arises from purchasing an asset in India, Section 43A does not apply. Instead, recognition follows ICDS VI guidelines. For monetary items, any foreign exchange gain or loss is recorded in the profit and loss account. For non-monetary items, the gain or loss is neither taxable nor deductible. This approach ensures that only monetary items impact taxable income, aligning with the specific provisions outlined in ICDS VI concerning foreign exchange rate changes.