Raising an Invioce in foreign currency

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This query is : Resolved

S. Anand (Querist)

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

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 February 2010 The xport of BSS requires - recepient outside , usage of service outside and receipt in CFE. $ invoice and receipt required.

S. Anand

S. Anand (Querist)

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

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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.

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