Advise on FEMA for payment in usd

Save Share

This query is : Open

Quick Summary

This discussion addresses whether it's permissible to make local payments in USD to an Indian-registered vendor when the purchase invoice is issued in USD and the contract is executed outside India. While the invoice and contract might be in USD, Indian regulations, specifically the FEM (Manner of Receipt and Payments) Regulations, generally prohibit local payments in USD within India.

VARMA

VARMA (Querist)
Follow

29 April 2023 I need advise, whether we can pay local payment in USD. Vendor registered in india and purchase invoice will be issued in USD. for contract execution outside india.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 April 2023 Contract executed outside India and invoice is in USD, payment can be made in USD.

dhaval thakkar

dhaval thakkar (Expert)
Follow

27 September 2023 Your query seems to be Unclear. But Local Payments in India are not allowed in USD as per FEM (Manner of Receipt and Payments) Regulations.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!