BRC for invoice in INR

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Jaffar (Querist)
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19 November 2010 Dear Sir

I am confussed regarding BRC for invoice in INR, If we make Invoice in INR and received the payment in USD

Suppose
Inv Value in INR is - 100000
At the time of payment Party Transfer - 2173.91 @ 46 (i.e. 100000/46 = 2173.91, as party made full payment in USD at rate of day transfered)
As we received the same amount in EEFC account after deduction of USD 25 as bank charges i.e. (2173.91-25 = 2148.91),
but on date of transfering from EEFC account USD rate was 45.5.
So : - 2148.91 X 45.5 = 97775.41 INR

Loss due to USD fluctuation (100000-97775.41 = 2224.6)

Now, my doubt is,

- - - Is these BRC will be remarked by Authorised Dealer or Bank as "Part Realizied" as it's a loss due to fluctatuation in USD rate nor of short payment, while party has made full payment and no further payment is going to come against these invoice.

Pls clear ny these doubt

Thank & Regards

Jaffar

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 November 2010 Please Noted That:-
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but the export proceeds shall be realised in freely convertible currency.

However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of ACU or Nepal or Bhutan. Additionally, the rupee payment through the Vostro account must be against payment in free foreign currency by the buyer in his non resident bank account. The free foreign exchange remitted by the buyer to his non resident bank (after deducting the bank service charges) on account of this transaction would be taken as the export realization under the export promotion schemes of this Policy. (This will provide relief to the exporters who are willing to invoice in Indian Rupees so that they do not face foreign exchange fluctuation risk. It would be relevant for the exporters when Rupee appreciates).

(Details can be seen in Paragraph 2.40 of the FT Policy).

For more info: - log on http://www.dgft.gov.in/

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