Hi,
We are an Indian company based in China and eport goods to our clients in India. To send the payment to us in USD, the client would normally go to his bank, show them the proforma invoice and send the USD. Then once the goods are received, I have been told by clients, that they are supposed to go to bank to the bank within X Months with the Invoice stamped by the customs and submit the same to the bank, to prove that the goods were actually imported.
However, sometimes we have scenarios, where the client has to pay us for a service not import of goods, for e.g. we carry out some supplier verficiation work for them, or they need to pay us documentation charges for change of documents or any other "service related work". In this case, there will be no actual import of goods by our client. So I was wondering what are the bank rules in this scenario? How can they client send us USD, as after X months, he want have any paperwork to show imports?
I am sure, there must be procedures in place for sending such payment, as several companies in India pay Service based companies abroad. Would appreciate any help.
CAclubindia
