Forex Regulation
Forex Regulation comprises of regulating, recording and presentation of foreign exchange fluctuation gain or losses as per the provisions of Generally Accepted Accounting Principles (GAAP)
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- Forex Regulation on Exchange fluctuation gain / loss on Revenue account
- All transactions which are not related to acquisition, installation, disposition of any capital asset are considered as foreign exchange fluctuation gain / loss on revenue account; some examples are Trade Receivables, Trade Payables etc.
- Forex Regulation on Exchange fluctuation gain / loss on Capital account
- All transactions which are related to acquisition, installation, disposition of any capital asset are considered as foreign exchange fluctuation gain / loss on capital account; some examples are Purchase /Sale of plant & Machinery, Capital asset items etc.
- Capital nature transaction covered under section 43A of the income tax act
- Capital nature transaction not covered under section 43A of the income tax act