Export in INR

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2011 Dear Sir,

We received one Letter of Credit through ABC company registered in India for export of merchandise in INR to a foreign country.

In the LC it is mentioned that goods to be exported to foreign country but we have following doubts;

1) Invoice as asked by them in the name of Indian company as buyer and Buyer other than consignee as US company - will it be called as local sale.

2) The ABC company in India is giving disclaimer not to avail any DBK or DEPB - is that an indication that it is a local sale.

3) Payment will come from Indian Bank for this export transaction - will it attract any banking consequences?

4) Does this kind of sale will attract any Excise?

Please advise

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

04 April 2011 please noted that after export foreign currency Comes through the
1.letter of credit
2. FIRC
3. demand draft

the above said condition is occurs by the EXPORT SALES CONTRACT.

2. INVOICE ISSUED BY THE EXPORTER TO IMPORTER. IT CAN ALSO APPLY IN THE CASE OF SEZ UNIT.

3. PAYMENT OF THE EXPORTED GOODS IS MANDATORY BY BUYER TO THE SELLER.

4. IF YOUR COMPANY IS EXPORTED EXCISABLE GOODS AND YOU CAN AVAIL CENVAT .

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