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Fema

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(Querist)
29 August 2011 Dear Friend,

Let Co.X and Co. Y are Indian Companies.

Co. X had purchased a Machinery from Co.Y and Co.Y raised an Invoice in the name of Co.X and amount in USD. Now my Question is

Is Co.X can pay the amount in USD or only in INR based on the exchange rate pertaining to Invoice Date.

How a FEMA Regulations has an Impact in this case.

Please explain.

Thanks & regards,

Vijay Kumar.
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VISHRUT

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VISHRUT (Expert)
29 August 2011 In my opinion Company can not raise bill in the USD unless or until it has foreign connection or holding.

So invoice is required to be raised in INR only and you have to comply all the rules of FEMA if you raise bill in USD.
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CA. Anuj Gupta

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CA. Anuj Gupta (Expert)
30 August 2011 If the Co. Y is located in SEZ or STPI then it can raise invoice in USD otherwise not.

Anuj
+91-9810106211
femaquery@gmail.com
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