Under SEZ rules, our SEZ unit issues monthly invoices to our Head Office (DTA) for shared operating costs (rent, electricity, travel, etc.) without markup. For bank remittance in foreign currency, the bank has requested a clear description of services instead of just mentioning 'cross charge.'
What would be the correct description to mention on the invoice to satisfy SEZ and RBI remittance requirements? Also, which RBI purpose code should be used for such reimbursement?
Designate intercompany cost reimbursement as inward remittance for expense reimbursement; confirm RBI numeric purpose code with bank Intercompany cost reimbursement: reimbursement of shared operating costs (rent, utilities, electricity, travel, telecommunications, administrative and similar overheads) billed on a no-markup, cost-to-cost basis under the intercompany cost-sharing agreement. For RBI purpose coding, designate the transaction as an inward remittance for reimbursement of expenses / intercompany cost reimbursement (use the bank's corresponding RBI purpose code for expense reimbursement); confirm the exact numeric purpose code with the remitting bank or RBI master directions as codes are periodically updated. (AI Summary)
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