Bill to Overseas client

[Mathi]

Dear All

We will receive the purchase order (PO) from our overseas client for Machine delivery and Will supply the machinery in INDIA as per PO condition. But payment will be transferred from our overseas client and we will raise the invoice as per PO Currency. (Foreign currency)

Bill to Overseas client" ship to " indian customer"

In this scenario what will be the rules as per RBI and FEMA preview? Kindly advice with details

AI Summary

FEMA compliance for bill-to overseas and ship-to Indian supply depends on documentation, banking channels, and domestic tax treatment.
Receipt of foreign currency from an overseas buyer for machinery supplied within India may be permissible under FEMA and RBI if supported by a genuine contract, routed through an Authorised Dealer bank, and backed by proper remittance documentation. The overseas party should be the contractual buyer, the Indian party the consignee or end user, and the foreign currency invoice should match the domestic supply. Since the machinery remains in India, the transaction is generally treated as a domestic taxable supply, not an export, for customs or GST purposes.