Fema
This query is : Resolved
Vijay Kumar
(Querist)
29 August 2011
Dear Friend,
Let Co.X and Co. Y are Indian Companies.
Co. X had purchased a Machinery from Co.Y and Co.Y raised an Invoice in the name of Co.X and amount in USD. Now my Question is
Is Co.X can pay the amount in USD or only in INR based on the exchange rate pertaining to Invoice Date.
How a FEMA Regulations has an Impact in this case.
Please explain.
Thanks & regards,
Vijay Kumar.
Let Co.X and Co. Y are Indian Companies.
Co. X had purchased a Machinery from Co.Y and Co.Y raised an Invoice in the name of Co.X and amount in USD. Now my Question is
Is Co.X can pay the amount in USD or only in INR based on the exchange rate pertaining to Invoice Date.
How a FEMA Regulations has an Impact in this case.
Please explain.
Thanks & regards,
Vijay Kumar.
29 August 2011
In my opinion Company can not raise bill in the USD unless or until it has foreign connection or holding.
So invoice is required to be raised in INR only and you have to comply all the rules of FEMA if you raise bill in USD.
So invoice is required to be raised in INR only and you have to comply all the rules of FEMA if you raise bill in USD.
CA. Anuj Gupta
(Expert)
30 August 2011
If the Co. Y is located in SEZ or STPI then it can raise invoice in USD otherwise not.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
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