One of my clients has made advance payment for import purchase in foreign currency, but later the order has been cancelled and hence the amount becomes refundable.
The seller (foreign party) wants to arrange that refund through one of its concerned party in India, hence the payment is to be received back in Domestic currency (Indian rupees).
Now my question is, is it ok to receive the refund in rupees against the advance paid in foreign currency, or it will create problem from FEMA point of view.
My simple question is, if advance payment is made in foreign currency then refund is also to be taken in foreign currency ?