Dear Sir,

We are a manufacturer and supplier of industrial gases in the state of Gujarat. Recently, we received an order from a Korean company for the supply of industrial gases for their project at TATA Sanand, Gujarat.

Although the actual supply of industrial gases will be made within Gujarat, the customer has informed us that the payment for our supplies will be remitted by their head office in Korea, either in USD or Korean Won (KRW).

In this regard, we require clarification on the following:

  1. How should we raise the invoice for the supply of industrial gases made within Gujarat when the payment is being received from the customer's head office in Korea?
  2. Under which purpose code should we receive and report the inward remittance?
  3. What supporting documents or declarations would be required from the Korean customer and/or from our side?
  4. How should the transaction be reported and regularized in IDPMS with the bank/RBI to ensure that the transaction is properly matched and closed without any compliance issues?
  5. Are there any specific RBI/FEMA or banking guidelines applicable to such transactions where the goods are supplied domestically in India but the payment is received from an overseas group/head office?

We would appreciate it if you could kindly guide us on the correct procedure, documentation, invoicing requirements, and applicable purpose code so that we can process the transaction in compliance with the applicable RBI/FEMA guidelines.

Kindly provide us with detailed guidance on the above.

Thank you.