APPLICATION OF YEAR-END RATE FOR COVERSION OF BUSINESS INCOME EARNED IN FOREIGN CURRENCY
The Delhi Income Tax Appellate Tribunal (ITAT) in the case of DCIT vs Dolphin Drilling Pte. Ltd.
(Taxpayer) has held that the conversion of business income earned in foreign currency into INR, in
accordance with Rule 115 of the Indian Tax Law (ITL), is to be made by adopting the conversion rate
prevailing at the end of the tax year. It also held that the Taxpayer, a company incorporated in Singapore and engaged in the business of hiring out drill-ship in India, is entitled to claim depreciation on the value of the drill-ship.
(Taxpayer) has held that the conversion of business income earned in foreign currency into INR, in
accordance with Rule 115 of the Indian Tax Law (ITL), is to be made by adopting the conversion rate
prevailing at the end of the tax year. It also held that the Taxpayer, a company incorporated in Singapore and engaged in the business of hiring out drill-ship in India, is entitled to claim depreciation on the value of the drill-ship.
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