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Issue Id: - 114954
Dated: 9-5-2019
By:- Neeta Dharamshi

  • Contents

We have delivered goods to Indian party as per order from overseas party. Billing is in the name of overseas party and ship to is Indian party. We have paid full gst amount since goods are not crossing Indian border .

Now we want to receive payment from overseas customer but bank is not allowing us to receive payment. we are ready for payment in INR too

what is way out. how to get this payment. Has anyone faced this problem? How to resolve it. whom to contact in RBI for this issue.

pls reply urgently

Posts / Replies

Showing Replies 1 to 15 of 47 Records

1 Dated: 10-5-2019

As per Section 10 of IGST Act, "Bill to -ship to " model/facility is available within India only and not for transaction outside India whether import or export. Read language of the title of Section 10 and Section 10(b) of IGST Act. None will go beyond law whether it is Bank or RBI or Other Departments of Govt.. Foreign Exchange is not involved. Export is not involved.

2 Dated: 10-5-2019

Export means physical export i.e. sending goods out of India. You may get payment from your foreign counter part but no export benefits/incentive would be allowed to you.

3 Dated: 10-5-2019

Undoubtedly, Sir.

4 Dated: 10-5-2019
By:- Neeta Dharamshi

I AGREE IT IS NOT EXPORT. we don't want to claim any export benefit also. GST IS ALREADY PAID ON IT

We just want payment from overseas customer.

5 Dated: 10-5-2019

Practical approach without any hurdle.

In the absence of export documents, best option is to get payment in Indian currency from your customer's customer i.e. . third person (Indian buyer). Deal is between you and foreign buyer. Your customer (foreign buyer) must be having cordial business relations his customer (third person). Your foreign buyer can issue directions to his customer (Indian buyer) to make payment in Indian Currency to you. How to get payment through Bank in India is between your foreign buyer and his customer. It is duty of your foreign buyer to arrange your payment in In Indian currency at the earliest. Leave it to both of them.

If you want to go to RBI, that is time consuming process. Short-cut step is to get your proceeds from your customer's customer i.e. to whom you have delivered goods.

6 Dated: 10-5-2019
By:- Neeta Dharamshi

Indian buyer where goods are delivered is subsidiary and it was global order issued by parent company of Indian Buyer to my parent company (overseas) which intern has raised order on its group co that is my Indian Co.

Indian buyer is not going to pay for goods received by him. Hence little difficult to get payment from Indian Buyer. still I will try.

but pls tell me whom to /where to contact in RBI for sorting this issue.

We have many transactions of this nature.

Our parent co is getting global order and intern We are selling for Indian requirement,

7 Dated: 10-5-2019

Bank becomes party only when export or import is declared through bank. Hence no involvement of bank. RBI never entertains public dealing directly. In my opinion, your foreign buyer can deposit/credit the sale proceeds/amount into your Bank Account in India citing the whole sequence of facts and development.

8 Dated: 10-5-2019

Indian buyer shall get funds transferred from their parent company (overseas) to India and they shall clear your dues.

No restriction in transfer of payment by parent company abroad to Indian entity. You will not get payment directly from overseas company for supply in India.

9 Dated: 11-5-2019

Sh.Sanjay Malhotra C.S. Sir, Thank for your intervention and cleaing the air on this issue.

10 Dated: 11-5-2019

Dear Sir,

I am cock sure that now with your final touch the querist will be able to reach her destination.

11 Dated: 12-5-2019
By:- Ganeshan Kalyani

Can your parent company (in overseas) receive payment from the overseas customer. And then transfer money to your company in India, being a subsidiary. Is this seems feasible.

12 Dated: 12-5-2019
By:- Ganeshan Kalyani

Sri Sanjay Sir, How are you ? We were missing your participation in this forum.

13 Dated: 13-5-2019

Thanks Sh. Ganeshan ji. I always appreciate and love to go through yours & Sh. Kasturi ji reverts to queries at this platform. You both are doing great job...

14 Dated: 13-5-2019
By:- Neeta Dharamshi

Very happy to see so many replies formy issue.

with respect to reply from - Ganeshan Kalyani. i have following query

IF overseas customer gives payment to my parent company overseas then I can adjust it against debtors lying in my account? Is it allowed as per Income Tax Act?

Else there will be debtors on one side and loan/advance received from the overseas parent on the other side

15 Dated: 15-5-2019
By:- Subhash Modi

Since physical delivery of the goods was from India to within India you have done the right thing by raising a GST invoice akin to any domestic sale.

You can legitimately receive payment in free foreign exchange or from the INR balances held in India by the overseas bank of the 'bill to' party known as Vostro Account..

Though there is no export payment in FE or Rupees in Vostro A/c is permitted vide the following ;

Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 Notification No.FEMA 14 /2000-RB dated 3 rd May 2000


Old Query - New Comments are closed.

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