Fema & rbi

This query is : Resolved

Ketan Shah (Querist)
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28 September 2011 Dear Sir,

Can you guide me on the following Issue?

We are a MNC dealing in petrochemicals in Mumbai. One of our customer who is a shipper has arrived at mumbai wants to buy our oil with a condition that invoice should be in USD at Mumbai and payment will also be in USD. So can we raise invoice in USD in mumbai and realise payment in USD and consider it as a deemed export? Secondly whether VAT is applicable on the same? Whether we have to inform RBI by filing a necessary forms?

rvsekar2000

rvsekar2000 (Expert)
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07 October 2011 Hello,

There is no restriction to invoice at USD and to receive the payment in USD.

As this transaction falls under deemed export , you can avail exemption for VAT.

The only thing is that the export proceeds should be realised through your banker within 12 from the date of export.

Regards

R.V.Seckar

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