06 October 2015
We have received advance from overseas customers for supply of goods and now we are not in a position to supply goods within one year.And we are not interested in refunding the above mentioned money. What are the consequences or penalty we will face if we supply goods after one year.
B.8 Advance Payments against Exports (1) In terms of Regulation 16 of Notification No. FEMA 23/2000-RB dated May 3, 2000, where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter shall be under an obligation to ensure that the shipment of goods is made within one year from the date of receipt of advance payment; the rate of interest, if any, payable on the advance payment does not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points; and the documents covering the shipment are routed through the AD Category – I bank through whom the advance payment is received. Provided that in the event of the exporter’s inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the said period of one year, without the prior approval of the Reserve Bank.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
07 October 2015
Thanks for Reply but our query is not Resolved. What is the consequences for goods supplied after Expiry of one year from the date of advance receipt.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
07 October 2015
Please anyone Explain the Terminal Excise Duty(Excise duty Levied on What type of Products & how it is levied) and Refund of Terminal Excise duty