Can an India Company( Non-EOU unit) raise its sales invoice in USD on its India customers( Non-EOU units)? Here, such India Company, however, receives sales proceeds in INR from India customers who convert USD into INR at spot rate. Will this billing in USD violates any FEMA provisions/rules?
But, I am surprised, why GAAP has to come into picture here, because we are very clear that since my price list is in USD, I am entering into $ contract which also says that customer has to pay in INR by considering the FX rate on 'due date". As far as GAAP accounting is concerned, we shall account sales in INR by converting $ invoice into INR by considering the FX rate on Invoice date. I think, this is workable as far as GAAP accounting is concerned. My question was- Is it allowed per FEMA or Contract law to bill/contract in $ by India Company on its India customers, where the contract also says that customer has to pay in INR?
CAclubindia
