PAYMENT TO RESIDENT SUPPLIER IN FOREIGN EXCHANGE

[SANJIV KOTHARI]

 

I Would like to clerify can we make payment to Indian supplier who has supllied goods at our overseas project.

[YAGAY andSUN]

Under Deemed export scenario you may make the payment of foreign remittance.  Please also check the master circular in this regard.

AI Summary

Deemed export: foreign exchange remittance to resident supplier allowed for overseas project supplies, subject to master circular compliance. Payments in foreign currency to a resident Indian supplier for goods supplied to an overseas project may be permissible if treated as deemed export remittances; such payments require appropriate structuring, documentation, and adherence to the procedural conditions set out in the relevant Master Circular and remittance compliance requirements.