Billing currency in india

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 I would like to know in what situation an Indian company will be allowed to raise invoice in foreign currency on indian company for the work done in India.

In one of the case we have come accross , where client was say in Australia for which work was done in India by ABC co. in SEZ offshore location , part of this work was further outsourced to local Indian Vendor XYZ & co. & XYZ was allowed to raise invoice in AUD on ABC, not clear why this should be allowed at the first place?

Amol S Joglekar

Amol S Joglekar (Expert)

17 August 2012 Yes you are absolutely right. There is no reason to bill it in aud except for the convenience of Australian counter part. Any way we need to book it in INR at the corresponding rate

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 Thanks ,
Booking is not a problem.
Problem here is whether the local vendor can raise invoice in AUD & he can be made payment in AUD.

Amol S Joglekar

Amol S Joglekar (Expert)

18 August 2012 He can very well receive and/ or give payment in AUD. But raising invoice in AUD is not in line with the generally accepted reules of business. At the most he can give a traslated copy of the bill. This will be for understanding purpose. In a veru remote case, where the contract is negotiated in AUD. the invoice may be raised in AUD.

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