Foreign remitance

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Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2017 Hello,
We have a trading firm in auto parts. We import auto parts and sell in India. Now we have sourced a new supplier from overseas and we are keen to start regular business with them. In fact we have approved their samples and placed our first order as well.
While making payment in USD. we came to know that suppliers company name and their bank account holder is different. Bank account is on the name of the director of the company and proforma invoice is on the name of the company. Hence banks denied to make payment.
Can you please help us.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 Obtain payment instructions for the invoice from the company and give it to your bankers they can't deny the remittance.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2017 Sir, Thanks a lot for your reply.
We tried it, but bank refuse to make payment.
What to do?
Is their any other solution?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 May 2017 Amend the order and invoice for payment instructions. The bankers has to abide RBI instructions.

Third party payments for export/import transactions
Attention of Authorized Dealer Category-I banks is invited to A. P. (DIR Series) Circular No.70 dated November 8, 2013, in terms of which they have been permitted to allow third party payments for export of goods & software/ import of goods subject to the conditions stated therein.
2. In view of the difficulties faced by exporters/importers in meeting the condition "firm irrevocable order backed by a tripartite agreement should be in place" specified in the abovementioned Circular, it has been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned in the irrevocable order/invoice has been produced. This shall be subject to conditions as under:
(i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice/ FIRC.
(ii) AD bank should consider the FATF statements while handling such transaction.

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2017 Thanks a lot.
For our import consignment, we are arranging Proforma Invoice, Purchase order with Supplier company name and individual beneficiary name to whom we have to make payment. Supplier country is FATF member. Also our bank is listed in Authorized Dealers Category-I
So I hope our transaction will be done without any hassle.
Really, thanks a lot for your valuable guidance.

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