Export Sales made by Private Limited Company but payment received by director.

[Guest]

Export Sales of Service under the GST Regime was made by a Private Limited Company in the financial year 2022-23 under LUT. However, the payment of the said Export Sales was received from the foreign recipient by the Director in his own bank account instead of that of a company. What are the implications of this transaction in terms of receipt of payment.

[Padmanathan KV]

Have you claimed/ claiming refund of ITC?

[KASTURI SETHI]

Dear Querist,

This is not legally correct. You may face serious problems in FEMA and other Acts. Get it rectified at the earliest.

[KASTURI SETHI]

In order to be safe, visit jurisdictional DGFT office and seek advice for remedy.

[Shilpi Jain]

Agreed. Pls consult a consultant who is an expert in FEMA matters.

AI Summary

Director Mistakenly Receives Company Export Payment; Legal Issues Arise Under GST, FEMA Regulations in 2022-23. A Private Limited Company conducted export sales under the GST regime in the financial year 2022-23, but the payment was erroneously received by a director in their personal bank account instead of the company's account. Responses to this issue highlighted potential legal complications, particularly concerning FEMA and other regulations. It was advised to rectify the situation promptly, consult with a FEMA expert, and seek guidance from the jurisdictional DGFT office to address and resolve the implications of this transaction.