Duty drawback in case of goods sold to Nepal & payment received in Indian Rupees

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....uty drawback in case of goods sold to Nepal & payment received in Indian Rupees<br> Query (Issue) Started By: - MOHIT LUTHER Dated:- 13-9-2016 Last Reply Date:- 14-9-2016 Customs - Exim - SEZ<br>Got 3 Replies<br>Customs<br>Dear Sir, Can a exporter receive duty drawback , if he has sold goods to Nepal & payment is received from the party in Indian Rupees. Please guide. Reply By CS SANJAY MALHOTR....

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....A: The Reply: No until and unless foreign currency is realised or INR is received through Vostro account. Reply By YAGAY AND SUN: The Reply: All transactions between a person resident in India and a person resident in Nepal or Bhutan may be settled in Indian Rupees. However, in case of export of goods to Nepal, where the importer has been permitted by the Nepal Rashtra Bank to make payment in f....

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....ree foreign exchange, such payments shall be routed through the ACU mechanism. There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020) - "All export contracts and invoices shall be denominat....

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....ed either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan." India....

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....n Rupee is not a freely convertible currency, as yet. Reply By Ganeshan Kalyani: The Reply: Nice reply indeed . Healthy discussion. Cherished. Thanks.<br> Discussion Forum - Knowledge Sharing ....