Raising an Invioce in foreign currency
This query is : Resolved
19 February 2010
Dear Sir(s),
We have to raise an invoice against the existing agreement for services rendered on business support, on a Chinese company.
My query is whether we should raise the invoice on Indian currency or USD. As per the existing agreement the calculation is against a fixed percentage on a total USD value.
Please clarify
regards
S. Anand
We have to raise an invoice against the existing agreement for services rendered on business support, on a Chinese company.
My query is whether we should raise the invoice on Indian currency or USD. As per the existing agreement the calculation is against a fixed percentage on a total USD value.
Please clarify
regards
S. Anand
19 February 2010
The xport of BSS requires - recepient outside , usage of service outside and receipt in CFE. $ invoice and receipt required.
19 February 2010
Dear Sir,
I am not able to understand your clarification.
From your clarification I understand that the invoice should be raised in USD only and a relevant FIRC be obtained.
Request you to confirm my understanding
Regards
S. Anand
I am not able to understand your clarification.
From your clarification I understand that the invoice should be raised in USD only and a relevant FIRC be obtained.
Request you to confirm my understanding
Regards
S. Anand
19 July 2025
Yes, your understanding is correct.
Since the agreement is based on a fixed percentage of a total USD value and the services are provided to a foreign company (outside India), the invoice should be raised in USD (foreign currency).
Additionally, to comply with regulatory and accounting norms:
You should raise the invoice in USD.
On receiving payment, obtain a FIRC (Foreign Inward Remittance Certificate) from your bank as proof of foreign currency receipt.
This is essential for export of services compliance under FEMA and for claiming any benefits related to export.
If you invoice in INR, it may create complications for foreign exchange regulations and tax treatment of export services.
Since the agreement is based on a fixed percentage of a total USD value and the services are provided to a foreign company (outside India), the invoice should be raised in USD (foreign currency).
Additionally, to comply with regulatory and accounting norms:
You should raise the invoice in USD.
On receiving payment, obtain a FIRC (Foreign Inward Remittance Certificate) from your bank as proof of foreign currency receipt.
This is essential for export of services compliance under FEMA and for claiming any benefits related to export.
If you invoice in INR, it may create complications for foreign exchange regulations and tax treatment of export services.
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