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Foreign exchange

tejas (Student) (49 Points)

06 February 2016

after a sale on a due date do exporters in India receive an agreed sum of a foreign currency.. or do they receive a payment dependent upon the current exchange rate?

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SHINY (CA Final Student) (699 Points)
Replied 06 February 2016

It all depends upon the AGREEMENT with the other party. So it can be either way. If exporter receive payment in foreign currency then since it ll be converted into Indian Currency, hence exchange rate prevalent at that time holds relevance. Whereas if as per the Agreement, Exporter is to receive payment in Indian Currency, in such case Forex rate holds no relevance.

Jayasrinivas.Patri (Own Practice) (38 Points)
Replied 06 February 2016

payment against invoice will always be on desginated currency only which shall be as per contract agreed for while selling/ purchasing goods/ services.