Advance payment in foreign currency

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 Experts,

One of my clients has made advance payment for import purchase in foreign currency, but later the order has been cancelled and hence the amount becomes refundable.

The seller (foreign party) wants to arrange that refund through one of its concerned party in India, hence the payment is to be received back in Domestic currency (Indian rupees).

Now my question is, is it ok to receive the refund in rupees against the advance paid in foreign currency, or it will create problem from FEMA point of view.

My simple question is, if advance payment is made in foreign currency then refund is also to be taken in foreign currency ?

Please give your opinion on this.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 August 2014 As per FEMA point of view it should be taken in foreign currency and through banking channels.

Rupesh Jain

Rupesh Jain (Expert)
Follow

26 August 2014 ITS no problem if you are receiving the payment through banking channels.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 Thank you Seetharamanji and Rupeshji.

Payment is to be received through banking channel only, but its to be received in domestic currency...should we go ahead Rupeshji ??

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014
Any declaration need to be filed with bank, as the order is cancelled accordingly there will be no bill of entry to be received.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHUBHANGI GOEL

Shailesh Prajapati

Adesh Mahajan

Angadi & Co

Jaipal Singh

Subscribe Now

Advance payment in foreign currency

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Accountant

Manager- Finance and Compliance

Article Assistant

GST CONSULTANT