Rbi and/or fema
This query is : Resolved
16 April 2013
Company has incurred freight charges in India on behalf of their customer who is from USA. Client want to raised Debit Note for the same in USD. My query are as follows:
1. Can client raise debit note
2. can debit note in USD
3. what declaration to be provided in FIRC.
Thanks in Advance
1. Can client raise debit note
2. can debit note in USD
3. what declaration to be provided in FIRC.
Thanks in Advance
18 April 2013
1. Yes
2. Yes
3. Nothing
2. Yes
3. Nothing
Message likes :
1 times
18 April 2013
Thanks Sir
18 April 2013
One more query also is there in same nature:
Company sent material as per requirement of client and same has been dispatched from India to USA. Container filled upto 90% due to order. client raised query for empty portion of container which is 10%. Company wants to raised credit note of charges related to 10% of container. Company also want to continue relation with client.
Please provide your input on above query so we can take proper step in this regard.
Can company raised credit note and on what grounds.
Company sent material as per requirement of client and same has been dispatched from India to USA. Container filled upto 90% due to order. client raised query for empty portion of container which is 10%. Company wants to raised credit note of charges related to 10% of container. Company also want to continue relation with client.
Please provide your input on above query so we can take proper step in this regard.
Can company raised credit note and on what grounds.
20 July 2025
1. Can the client raise a debit note for freight charges?
Yes, the company (Indian exporter) can raise a debit note to the foreign client for additional freight charges incurred on their behalf.
Debit notes represent additional charges due from the client beyond the original invoice value.
2. Can the debit note be raised in USD?
Yes, the debit note can be raised in USD or the currency agreed upon in the export contract.
Under FEMA and RBI rules, export transactions including invoices, debit notes, credit notes, and payments are generally allowed in freely convertible currencies like USD.
The key is that the transaction must be properly recorded and reflected in export documents.
3. What declaration to be provided in FIRC?
FIRC (Foreign Inward Remittance Certificate) is issued by the bank to the exporter as proof of receipt of foreign currency payment.
When the debit note amount is received from the client, the bank will issue an FIRC for the amount remitted.
The exporter should provide all relevant export documents, including invoices and debit notes to the bank.
A declaration confirming the transaction details and authenticity of the debit note may be required by the bank, certifying it relates to additional export services/charges.
Additional Query: Regarding Credit Note for 10% empty container space
The company can raise a credit note for charges related to the 10% empty portion of the container if agreed with the client or if the original contract permits such adjustments.
Grounds for credit note:
Adjustment in price due to lesser goods shipped than originally billed.
Correction of overcharged freight or packaging costs.
The credit note should mention the reason clearly and be linked to the original invoice.
Under FEMA, credit notes are allowed as adjustments in export invoices and must be recorded properly.
It is important to maintain proper documentation for RBI reporting.
Yes, the company (Indian exporter) can raise a debit note to the foreign client for additional freight charges incurred on their behalf.
Debit notes represent additional charges due from the client beyond the original invoice value.
2. Can the debit note be raised in USD?
Yes, the debit note can be raised in USD or the currency agreed upon in the export contract.
Under FEMA and RBI rules, export transactions including invoices, debit notes, credit notes, and payments are generally allowed in freely convertible currencies like USD.
The key is that the transaction must be properly recorded and reflected in export documents.
3. What declaration to be provided in FIRC?
FIRC (Foreign Inward Remittance Certificate) is issued by the bank to the exporter as proof of receipt of foreign currency payment.
When the debit note amount is received from the client, the bank will issue an FIRC for the amount remitted.
The exporter should provide all relevant export documents, including invoices and debit notes to the bank.
A declaration confirming the transaction details and authenticity of the debit note may be required by the bank, certifying it relates to additional export services/charges.
Additional Query: Regarding Credit Note for 10% empty container space
The company can raise a credit note for charges related to the 10% empty portion of the container if agreed with the client or if the original contract permits such adjustments.
Grounds for credit note:
Adjustment in price due to lesser goods shipped than originally billed.
Correction of overcharged freight or packaging costs.
The credit note should mention the reason clearly and be linked to the original invoice.
Under FEMA, credit notes are allowed as adjustments in export invoices and must be recorded properly.
It is important to maintain proper documentation for RBI reporting.
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