A query - FEMA
This query is : Resolved
27 April 2011
Dear All,
An Indian Company has rendered some services to an Overseas Company for cash consideration. However, the overseas entity is not in a position to make the payment.
What shall be the re-course for Indian entity?
Regards
Harish
An Indian Company has rendered some services to an Overseas Company for cash consideration. However, the overseas entity is not in a position to make the payment.
What shall be the re-course for Indian entity?
Regards
Harish
01 August 2011
Dear Sir,
The export of Goods and services is governed by Section 8 read with FEMA notification no 23/2000 as amended from time to time. Exports of goods is an current account transaction under FEMA. The proceeds of exports has to be repatriated into India within 6 months [extended to 12 months right now]. If exporter is not able to realise the foreign exchange within 6 months it has to apply to AD for reasons and for extension of period. Kindly refer master circular for further detail on this. Please follow the link: http://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=6502
Or otherwise also the exporter can ask the overseas company to issue its share in favour of exporter as export capitalisation.
Please be free to write for further clarification.
Regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com
The export of Goods and services is governed by Section 8 read with FEMA notification no 23/2000 as amended from time to time. Exports of goods is an current account transaction under FEMA. The proceeds of exports has to be repatriated into India within 6 months [extended to 12 months right now]. If exporter is not able to realise the foreign exchange within 6 months it has to apply to AD for reasons and for extension of period. Kindly refer master circular for further detail on this. Please follow the link: http://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=6502
Or otherwise also the exporter can ask the overseas company to issue its share in favour of exporter as export capitalisation.
Please be free to write for further clarification.
Regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com
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