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TMI BlogRate of Exchange - Section 67AX X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of Exchange - Section 67A X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement with a foreign company on 25th June 2012 to provide certain services, for which monthly invoice will be raised (IN USD) on first day of following month. This agreement is for calender year 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012. As per Section 67A, rate of exchange will be the rate in force at the time of service provided or agreed to be provided. So in the above case whether rate of exchange of 25th June 2012( date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement) will be used for whole of the service period or the rate on the date of invoice will be exchange rate. Reply By Surender Gupta: The Reply: Since the agreement in question is for continuo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us services and for which monthly Invoice is required to be issued, the rate of foreign exchange would be as applicable on the date of Invoice. However, in case advance is received, than rate of excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge is as applicable on the date of receipt of advance. Here, the term agreed to the provided is not to be taken as date of agreement for future services for neither invoice has been raised nor any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment has been received.
In my view Provisions of section 67A are required to be read with POT rules, 2011 as amended. X X X X Extracts X X X X X X X X Extracts X X X X
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