Supply

This query is : Resolved

Junaid Ahmed (Querist)
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28 August 2013 Myclarification on forex and clearance.

We ordered an item from France in Euro. The company we ordered in France, asks its dealer in chennai-India to supply the item.

The Foreign company raised a invoice in Euro for product supplied and demanding money.

Our clarification is,

Whether it is allowed,
How do we pay euro amount to france co. for the supply made by their Indian dealer,

Any relevant FEMA provision is available for payment.

Can you please clarify.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 August 2013 in terms of Para 2.40 of the Foreign Trade Policy (August 27, 2009 - March 31, 2014), “All export contracts and 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 bank situated in any country, other than a member country of the ACU or Nepal or Bhutan”. Indian Rupee is not a freely convertible currency,

Junaid Ahmed

Junaid Ahmed (Querist)
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30 August 2013 Sir,Thankyou very much.

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Junaid Ahmed

Junaid Ahmed (Querist)
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30 August 2013 Your reply focuses on Export proceed. Can you inform about in the context of Imports.
JunaidAhmed