Export but supply in india
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 October 2012
Dear Sir,
I have a customer in Czech Republic who is ready to place an order whose materials will be supplied to his client in India but the payment will be made by him in US$. Can I receive payment in US$? How can I then get shipping bill and sdf? Will it be treated as Deemed export and if yes, can I enjoy benefit of Duty drawback.
Thanks
Daulat
I have a customer in Czech Republic who is ready to place an order whose materials will be supplied to his client in India but the payment will be made by him in US$. Can I receive payment in US$? How can I then get shipping bill and sdf? Will it be treated as Deemed export and if yes, can I enjoy benefit of Duty drawback.
Thanks
Daulat
15 October 2012
As per para 2.40 of the Foreign Trade Policy,2009-2014
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but 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, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.
Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit.
further info:
https://www.caclubindia.com/experts/invoicing-in-usd-to-sez-unit-1008909.asp#.UHZ65K4-1tg
regards,
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but 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, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.
Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit.
further info:
https://www.caclubindia.com/experts/invoicing-in-usd-to-sez-unit-1008909.asp#.UHZ65K4-1tg
regards,
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