Foreign currency account

[Narendra Soni]

Dear Experts,

Can a SEZ unit made payment in RS(INR) from his Foreign Currency Account to units located in DTY area.

As per DGFT policy , payment received from SEZ units can only be counted for export obligation if it has been remitted through Foreign Currency Account of SEZ unit.

Please suggest procedure for payment through FC accounts by SEZ units.

Thanks and Regards

Narendra Kumar Soni

DGM-Indiract taxation

[YAGAY and SUN]

please check Rule 30 of the SEZ Rules read with Trade Notice No. 01/2016 dated 20th July 2016 issued by DGFT.

AI Summary

Foreign currency account use by SEZ units: restrictions on payments to DTA units under SEZ Rules and DGFT guidance.
Whether a SEZ unit may make payments in Indian rupees from its Foreign Currency Account to DTA units is queried, highlighting DGFT policy that payments received from SEZ units are counted for discharge of export obligation only when remitted through the SEZ unit's Foreign Currency Account. The respondent refers to Rule 30 of the SEZ Rules and DGFT Trade Notice No. 01/2016 for the applicable conditions and procedural guidance.