Exports receipts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2014 We are 100% EOU, we are export various goods. In normal practice we raise invoice in USD and receipt of invoice is also in USD.
Now one of the part insisting to raise the invoice in rupee currency and they will also make payment in rupee currency.

i have query whether there is any drawback or any benefit in such transaction in view of income tax, custom, RBI Policy etc

Please give a valid answer
Thanks in advance

P V Ram

P V Ram (Expert)
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18 December 2014 You can raise invoice in INR also. The requirement is such INR should come from abroad. Anyway, this is the botheration of your customer which he is prepared to take.

In general INR received from abroad is treated as receipt of foreign currency and banks issue FIRCs as well.

For specifics, more details are required to look into.

Thanks!