RBI APPROVAL

[Guest]

IF GOODS ARE SUPPLIED TO COMPANY IN INDIA AND BILLING IS DONE TO COMPANY IN UAE. REMITANCE WILL BE RECEIVED IN USD FROM UAE DO WE NEED TO TAKE PRIOR APPROVAL FROM RBI FOR SUCH CASES. IF NO PLEASE GIVE REFERNECE TO CIRCULAR/NOTIFICATION ETC.

[Surender Gupta]

There is no specific provision about this in accordance with my knowledge. But, you must provide the details to bank before getting the remittance to avoid the allegation of illegal money.

AI Summary

Clarification on RBI approval for billing through UAE company for Indian goods supply; advisable to inform bank of transaction. A query was raised regarding whether prior approval from the Reserve Bank of India (RBI) is needed when goods are supplied to an Indian company, but billing and remittance are handled through a company in the UAE, with payment received in USD. A response indicated that while there is no specific provision requiring RBI approval, it is advisable to inform the bank of the transaction details to prevent any allegations of illegal money handling.