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Is the profit from exchange difference due to advance payment of import subject to a tax?

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SUBJECT

About recording the exchange difference of advance payment of import as income.


QUESTION

We made a payment in June to bring machine from abroad.

Bill of entry date of the machine is September 4.

There is a serious exchange difference of 500.000 as of the entry date of the machine.

The firm hasn’t started full capacity output.

Is there any option other than recording this exchange difference as income?

(14.11.2018 13:09)


ANSWER

It should be recorded as income.


Source: Ismmo
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