Query regarding export to nepal with payment to india in $

Save Share

This query is : Resolved

Pooja garg (Querist)

19 December 2014 Dear Mr. Vikas,

I got your reference from CA Club.

Could you please sort out the following query:

Subsidiary Company is having Parent Company in Japan which wants to send spare parts to Nepal directly through air and invoice is to be generated from India & Nepal party is ready to make payment in US Dollar to India.

Kindly confirm if this is permitted preferably with the sources to substantiate the same.

Thanks in advance

Regards,
Pooja Garg

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

27 December 2014 in terms of Para 2.40 of the Foreign Trade Policy (2009-2014), “All export contracts and invoices shall be denominated either in freely convertible currency or in Indian Rupees but export proceeds shall be realised in freely convertible currency. However, export proceeds against specific exports may also be realised in rupees provided it is through a freely convertible Vostro account of a non-resident bank situated in any country, other than a member country of the ACU or Nepal or Bhutan”.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now