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Invoice in usd payment received in inr

Parama Sivam (4 Points)

09 February 2016

Hi,

I made an invoice for 7000 USD.

But buyer made payment in INR for that invoice.

Is there any problem occurs in future ?

Some professional.said that to return the INR received by me to buyer and ask the buyer to send in USD.

What can I do now ?

Totally confusing.

Kindly advise.

T I A.

Sivam.

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4 Replies

Mihir (Chartered Accountant) (42 Points)
Replied 10 February 2016

Mr Sivam, It will be better if you give back the INR and take payment in Dollars and later convert the same into INR. I know it sounds silly but the there are several reason behind it and the most important is you will bring foreign currency to india. Our government promotes Export with main intention of getting foreign currency and build reserves. Thanks CA Mihir Mehta mihirmehta529 @ gmail.com

Ajit Hegde (CA - Final) (1367 Points)
Replied 11 February 2016

As per my knowledge remittence in inr is allowed only from nepal, bhutan and iran. It is better you insist on usd payment witj your customer. Also you wont be able to match the inward amount with the invoice. Refer FEMA regulations for reference

Varun Sharma (Proprietor-Sharma Varun & Co.) (244 Points)
Replied 11 February 2016

If payment is coming from any country in INR except from Nepal, Bhutan and Iran, as a consideration of export then the receiving person can face problem in getting Bank Realization Certificate(BRC), which is one of the most important export proof.

Dhaval Shah (2 Points)
Replied 19 October 2017

Invoice in usd payment received in inr Bank asking for such documents of Exports and I received payment from PayPal and they need firc I have all proofs of Exports but some client made payment in india in inr! and I export in usd now what should I do.

Now bank demanding for Account opening to sort out issue and asking for money which I already closed and operating from other bank.