FEMA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2010 dear Sir,

i would like to know whether a company can accept cash from a foreign buyer in INR or Dollars as advance against some sale to be made to the buyer.
the buyer has travelled to India and wants to place an order , can a advance in cash be accepted under FEMA and how will be BRC be filed for this.

kindly help.
thanks in advance.

Rasesh

Rasesh (Expert)
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26 February 2010 Cash can be obtained in foreign currency and not INR provided a declaration is made with the Customs at the Airports and a letter is obtained from the buyer that the payment is made as an advance against PO Number _____ with description of the goods, rate and total value.

At the time of clearance of BRC, this declaration and the letter from the buyer will have to submitted to the bank.