Settlement of export

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Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 Assesse have exported material valued at 10000 Euro (Qty 1000 at the rate 10Euro for each qty) in April 10. Assesse have received price increase from customer in Oct 10 to 15 Euro for each qty wef April 10. If assesse get the payment from customer 15000Euro (1000 qty at new rate Euro 15) for material supplied in April 10. How one can clarify to bank for Excess receipt of Euro 5000 ((1000 Qty at 5 Euro (15-10)).

U S Sharma

U S Sharma (Expert)

03 November 2011 client can not pay without bill of exchange, which was submitted to client through your banker for 10000 euro.

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2011 Dear Sir,

Thanks for advice..
We export material at old rate (10 EURO) & stored it in our rented warehouse, customer pick up the material as per their requirement & accordingly we raised a separate invoice at new rate (15 Euro due to price increase) for material consumed by customer. This problem accord for qty exported at old rate. This might become problem to customer also for paying excess payment for material imported at old rate. But from our point of view, we have to give an explanation for excess payment in EURO for material exported at lower rate. How to give that explanation?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

08 November 2011 WHICH IS FOREIGN CURRENCY MENTIONED IN SHIPPING BILL THE EXPORTER WILL GAIN THE AMOUNT AND THIS IS SUBJECT OF BETWEEN THEM AS A EXPORT SALES CONTRACT

DGFT AND CUSTOM PROVIDE EXPORTER (IF OCCURS IN LIST OF EXPORT) IN INCENTIVE ON RELISED CURRENCY OR MENTIONED IN SHIPPING BILL.

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