11 December 2011
I would like to know whether any Firm abroad can transfer INR from Kuwait for the professional consultancy charges rendered from India by a partnership firm.
If so how the invoice to be submitted to Bank i.e, whether in kuwaiti Dinar or INR.
If INR invoice is given , whether it qualifies for export of services?
As per RBI master circular on Export of Goods and Services , 2011,
There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under theForeign Exchange Management Act 1999. Further, in terms of Para 2.40 of the Foreign Trade Policy (August 27, 2009 - March 31, 2014), “All export contracts and Website : www.fema.rbi.org.in Email 4 : tradedivisionexport@rbi.org.in invoices shall be denominated either in freely convertible currency or in Indian Rupees but export proceeds shall be realised in freely convertible currency. However, export proceeds against specific exports may also be realised in rupees provided it is through a freely convertible Vostro account of a non-resident banksituated in any country, other than a member country of the ACU or Nepal orBhutan”. Indian Rupee is not a freely convertible currency, as yet.
CAclubindia
