Foreign Exchange billing and payment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 March 2010
I would like to seek your help in providing me solution to my following two problems
Question No.1
Our client is Indian gov. organisation with turnkey project. For one of the item we are procuring material from India but contract with client is in USD and country of origin is India can we bill and collect money in USD?
If answer is no than please suggest under which act or notification
Question No.2
Problem is similar to question no.1 only difference is that country of origin as per contract is outside India
Can we bill and collect money in USD as per contract
Question No.1
Our client is Indian gov. organisation with turnkey project. For one of the item we are procuring material from India but contract with client is in USD and country of origin is India can we bill and collect money in USD?
If answer is no than please suggest under which act or notification
Question No.2
Problem is similar to question no.1 only difference is that country of origin as per contract is outside India
Can we bill and collect money in USD as per contract
17 March 2010
As per my opinion for both situation you can raise bill/collect in USD and for the purpose of service tax the euivalent amount of INR would be considered at applicable exchange rate as on the date of payment ( receipt in your hand).
However for the purpose of VAT, if you have office in India, I am not sure and will get back after checking.
However for the purpose of VAT, if you have office in India, I am not sure and will get back after checking.
17 March 2010
If you are charging VAT or CST in your bill I think it would be prudent to put the value in INR beside USD for charging TAX as applicable (at contractual conversion rate or rate as on date of sale).
However if the sale is export in your hand,assuming you are not having office in India or selling from foreign office then this is not relevant.
However if the sale is export in your hand,assuming you are not having office in India or selling from foreign office then this is not relevant.
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