Export Incentive
This query is : Open
03 October 2009
Dear Sir,
Basically we are into ready made garment exports. Now my question is, we have made export shipment of USD 350000/- to a particular buyer in FY 2008-09 & all the payments have been relised in full for the same. Now the buyer is asking for the discount of USD $23000/-. While we approached our bank for TT Payment, they are asking us to surrender the proportionate drawback amt. I understand that if the discount amt is below 10% we need not surrender the export incentive. So I request you kindly advice in this matter.
Thanking you in advance,
Santosh
Basically we are into ready made garment exports. Now my question is, we have made export shipment of USD 350000/- to a particular buyer in FY 2008-09 & all the payments have been relised in full for the same. Now the buyer is asking for the discount of USD $23000/-. While we approached our bank for TT Payment, they are asking us to surrender the proportionate drawback amt. I understand that if the discount amt is below 10% we need not surrender the export incentive. So I request you kindly advice in this matter.
Thanking you in advance,
Santosh
05 October 2009
Yes you are right santosh , but discount is always adjusted in invoice in fob value, otherwise it can be deemed that you have overinvoiced the sales bill to claim government benefit . Its not a usual case when u receive forex and then remit back in the nature of discount.
You are not supposed to surrender if the amount received is 90% , but when u receive 100% and want to remit 10% back , i think an issue may be created.
You are not supposed to surrender if the amount received is 90% , but when u receive 100% and want to remit 10% back , i think an issue may be created.
06 October 2009
Thank you very much sir.
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