Remittance overseas
This query is : Resolved
02 November 2022
Dear Experts,
I am working with private limited company. We had received a advance of usd30000 from our overseas customer. Due to some reason we have been unable to fulfill their requirement and now we have to refund the amount. But the issue arise that am asking to my bank to refund the amount usd 30000, they are denying to refund money in usd. And said we can only remit the amount in INR equal to the amount received at that time. But at that time the usd rate was 72-73 and now the rate 82-83 if we return their money in INR then they have a loss of 2500-3000 USD. You please advice me on that the bank justification is correct. Here we are unable to fulfill customer demand which is our loss not their. Its very difficult to convince to the customer that we can refund only usd 27500. In case of Export our bank send reminders even for 1usd then how the overseas customer can accept the loss of 2500.
I am working with private limited company. We had received a advance of usd30000 from our overseas customer. Due to some reason we have been unable to fulfill their requirement and now we have to refund the amount. But the issue arise that am asking to my bank to refund the amount usd 30000, they are denying to refund money in usd. And said we can only remit the amount in INR equal to the amount received at that time. But at that time the usd rate was 72-73 and now the rate 82-83 if we return their money in INR then they have a loss of 2500-3000 USD. You please advice me on that the bank justification is correct. Here we are unable to fulfill customer demand which is our loss not their. Its very difficult to convince to the customer that we can refund only usd 27500. In case of Export our bank send reminders even for 1usd then how the overseas customer can accept the loss of 2500.
CA R SEETHARAMAN
(Expert)
02 November 2022
The bank is not justified in refusing to pay USD 30000. Take up the issue with their head office.
Only you have to bear the exchange loss.
Only you have to bear the exchange loss.
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