Po in Foreign Currency

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This query is : Resolved

Rajesh Venkitaraman (Querist)

13 February 2008
In the case of High Sea sale, whether the PO on Indian Seller can be raised in Foreign Currency?

If yes:-

Can we have the HSS agreement as well as the Domestic Sale Invoice raised in FC? as the sale is between 2 DTA's operating in India.

Please advise.......

Rajesh Venkitaraman

R.V.RAO

R.V.RAO (Expert)

13 February 2008 WE ENTERED INTO A HIGH SEAS SALES AGREEMENT AND MADE A HIGH SEAS SALE IN 2004-2005. AT THAT TIME THE AGREEMENT FOR INBOND TRANSFER OF OWNERSHIP ( HIGH SEAS SALE AGREEMENT) AND INVOICE ARE BOTH MADE IN INDIAN CURRENCY. OUR COMPANY IS SELLER . THE BUYER IS ALSO AN INDIAN COMPANY.OUR COMPANY HAVING IMPORTED MATERIAL FROM ABROAD, MADE A HIGH SEAS SALE IN TRANSIT BEFORE THE MATERIAL LANDED ON INDIAN SHORES.

SO I FEEL THAT

1. IF BOTH BUYER AND SELLER ARE INDIAN ENTITIES

2. IF LANDING OF THE IMPORTED MATERIAL IS ULTIMATELY IN INDIA AND

3.IF THE SETTLEMENT OF PRICE OR CONSIDERATION IS IN INDIAN CURRENCY,

ALL DOCUMENTATION SHALL BE IN INDIAN CURRENCY.

ONLY WHEN WE EXPORT FROM A DTA COMPANY TO OUTSIDE INDIA , WE INVOICE IN FC.THIS IS OUR PRACTICE.

OTHER LEARNED MEMBERS OF OUR CA CLUB MAY ALSO EXPRESS THEIR VIEWS.
R.V.RAO

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