Hi
The bank would be providing details of rate exchange used. According to this, expense amount can be calculated and recorded in the books of accounts.
Card transaction cost as expense
Hi- When I use my Debit card for online purchase ( import service ) the money just debited directly from my account. I can not see bank charges for that transaction ( normally bank charge 3.5 % +ST on purchase amount for card transaction ). How can I claim this amount as my Expense. Bank does not show it in statement also there is no invoice. Say, Invoice value = 100 USD as per RBI rate it is 6500 INR Money actually debited from my account is 6800 INR . How can I claim 6800 - 6500 = 300 INR as my Expense. There is no record or documents. Thank you
Asked 7 years ago in Income Tax
Dear Sir,
The difference of Rs. 300 should be treated as bank charges and you can claim it. Actually for Rs. 300 you don't have separate document or invoice to justify but it is clubbed in the total figure of Rs.6800/-. You can claim it by giving the justification you mentioned in the question.
Thanks
Hi,
300 can be claimed as bank charges as the same has been debited from your account. I dont think you need any seperate documentation for the same.
Regards,
Nikhil
Hii
Generally on merchant website clearly mentioned about bank charges or you can visit bank website for there charges.
Hi, Thanks. Bank does not deduct any charge separately . It is just single transaction . Bank refused to provide me any statement or other documents regarding this matter. In their website following is mentioned -- 3.5% + applicable taxes on foreign currency transaction carried out on Debit Cards. which may vary time to time... I can back calculate and get the Card charge ..But the question is absence of any document or Invoices should I rely on this method.. . considering total yearly amount is not small.. Thanks
Asked 7 years ago
That should be fine. Just keep your calculations together which can be used to substantiate the claim.
Yes you can rely on this method to claim the expenses.
The bank is bound to provide the details. There must be done miscommunication. Please contact the bank again.
Isn't anything mentioned in the notes to the debit entries of such purchases in the bank statement??
No separate documents required to book such expense..U can book it as Bank charges and can claim it..only working u do to find out the difference figure will suffice.
Thanks
Asked 7 years ago
Most welcome
Welcome????
Yes, you can claim the expense by doing back calculation. Take screenshots of the bank policy.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
In case of any further assistance required,please Follow up.
Hope the query is resolved :)
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