Foriegn currency Exchange earnings- Vat Applicable or Not, VAT + CST

[Binu Karuthedath]

Dear Sir

One of the direct exporters have received the excess amount from the foreign currency conversion to INR and exporter have shown this as exchange difference income in their books and also 13 & 13 A Statement. Excess amount they have received due to foreign currency exchange rate difference(USD to INR) .is this applicable VAT ? is there any case law regarding this

Posts / Replies

[Ganeshan Kalyani]

In my view vat is not applicable on exchange rate fluctuation gain /loss.

[MARIAPPAN GOVINDARAJAN]

VAT is not applicable.

[YAGAY AND SUN]

There is no tax on Export except few scenario. Gain/loss due Foreign Exchange fluctuations needs to be accounted for according to Indian Accounting Standards. No VAT is chargeable provided you submit Copies of the S/Bs, B/L, EBRC to the VAT Authorities at the time of assessment.