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Rishi Vyas (Querist)

28 January 2011 Two Indian companies have entered into contract wherein one company has raised PO in foreign currency. The company on which this PO is raised is subsidiary of a foreign company. Is it possible to raise PO in US$ between two Indian companies.

Thanks & Regards
Rishi

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

28 January 2011 PO may be raised other than indian currency between the two indian companies, Even payment will be made in foreign curreny.

Rishi Vyas

Rishi Vyas (Querist)

28 January 2011 Dear Sir,

Thanks for the reply.

Could you please specify the relevant provision in FEMA.

Regards
Rishi

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

31 October 2011 I don't think FEMA permits Indian companies to raise invoices in US$ to Indian parties, the same is permitted only in case of STPI and SEZ units .

Anuj
+91-9810106211
femaquery@gmail.com

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