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Export proceed in inr

rahul (article) (41 Points)

15 June 2019

It is permissible under FEMA for the realisation of the export proceed in INR aganist the export of services . The payment are routed through the exchange house based in dubai , kuwait , Oman and reflected in INR in fedral bank

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3 Replies

CS M Pota (Company Secreatary) (3186 Points)
Replied 15 June 2019

There is no any restriction under FEMA that export realisation be received in INR but para 2.52 (a)of the Foreign Trade Poilcy 2015-20 Provides as under:

All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency.

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rahul (article) (41 Points)
Replied 15 June 2019

Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 Permit receipt in inr for export of service

CS M Pota (Company Secreatary) (3186 Points)
Replied 16 June 2019

Originally posted by : rahul
	Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 Permit receipt in inr for export of service

YES,as i said above as per FEMA there is no restriction but, Foreign Trade Policy says that :

"All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. "