Query regarding LUT, and currency recieved.

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This query is : Resolved

Darpan (Querist)

05 December 2020 We had applied for LUT, but the client accidentally paid via money transfer (like western union) to our current bank account. Since amount recieved is in INR and country is Israel, also I cannot get an FIRC for same as purpose code with these services is "Family assistance" as it shows in transaction desceiption.

It is second time he made this mistake, since he was used to making payment same way to the director(me) before incorporation of a company. For the last payment I just transferred it to myself, since it was how I used to recieve payment in my savings account, and in description I marked it as mistaken payment. For this one I am not sure if I should repeat same or not. Kindly clarify, as I am not getting proper response from my CA, and he asked me to confirm with someone else.
Previous amount was 500 usd, this time its 2000 usd. Work is export of IT services. Client has not asked for invoice and is ok without it.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 December 2020 Get order from your client for export of IT services. Raise invoice and send it through Email whether it's required by your client or not. Open current account and receive the payment through banking channel under proper code.

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