Divya Khandelwal asked 4 years ago
Export proceeds realized i.e received in bank but not able to export due to Covid situation
I have received proceeds from Dubai for an order, I was supposed to export it but due to COVID I am not able to do the same. Now if I sell the material in India what will be the consequences? Can I show it as a bill to ship to the transaction? or is there any other remedy?
P.S The Dubai party has asked to use the material in India and I don’t have to return the money received.
CMA Deepa N. Tanna answered 4 years ago
As per my knowledge , ‘bill to ship to’ facility available foe the transactions done within India only and not for the transactions outside India such as import and export.
And , as per FEMA act, exporter is under obligation to ensure that shipment to be completed within one year from the receipt of advance from foreign client.
Hence, what I think that your bank may also not accept such transaction against advance received from your Dubai client as you have received foreign currency not Indian currency.
