TaxTMI 
TaxTMI 
Import from overseas-regarding
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....mport from overseas-regarding <br> Query (Issue) Started By: - Mathi Dated:- 20-5-2026 FEMA <br> Got 6 Replies <br> FEMA<br> <br> We are MNC company in india and our counterpart in USA. We need to procure a shaft from our USA office and the shaft is not available. so our USA office advice to procure the shaft from their supplier who s located in Australia. So purchase order and payment will trans....
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....fer to our USA office and we will bring the material from Australian Supplier to India..(Our USA office will settle to Australian suuplier) In this connection How we will settle the transaction in IDPMS by ICEGATE --Reply By: Shilpi Jain The Reply: When you submit the docs to the AD Bank, you can show that your contract is with the US party while delivery you have received from the Aus party. B....
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....asis this the entry in EDPMS can be closed. --- Sub-Reply By: Shilpi Jain The Sub-Reply: Sorry , read it as IDPMS --Reply By: Shilpi Jain The Reply: This is not a case of third party payemnt or any set off since you would be paying to the vendor on whom you have placed the order. So just explain to your AD banker and it should be closed in IDPMS --Reply By: YAGAY andSUN The Reply: In the....
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.... present transaction, the Indian entity shall be treated as the importer of record since the goods (shaft) are being physically imported into India from the Australian supplier, though the commercial payment is routed through the group company in USA. Under RBI Master Direction - Import of Goods and Services, "Third Party Payment for Import Transactions" is permissible, provided there is a firm pu....
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....rchase order / tripartite arrangement and the import documents clearly disclose the third-party payment mechanism. Accordingly, in IDPMS/ICEGATE, the Bill of Entry must be filed in the name of the Indian importer, with the Australian supplier as shipper/exporter, and narration that payment is to be remitted to / through the USA affiliate as third-party beneficiary. The AD Category-I Bank shall clo....
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....se the IDPMS entry based on the Bill of Entry, import invoice, inter-company debit note / agreement, and proof that the remittance has been made to the USA office which in turn settles the Australian supplier. The transaction shall not qualify as merchanting trade since goods are entering India. Compliance should be aligned with Para B.7 (Third Party Payment for Import Transactions) of RBI Master ....
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....Direction No. 17/2016-17 under FEMA, subject to AD Bank satisfaction regarding bona fides, FATF compliance, and matching of import documents with remittance trail. --Reply By: YAGAY andSUN The Reply: B.7. Third Party Payment for Import Transactions Master Direction - Import of Goods and Services (Updated as on January 12, 2026) RBI/FED/2016-17/12 FED Master Direction No. 17/2016-17 January 1....
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...., 2016 AD category I banks are allowed to make payments to a third party for import of goods, subject to conditions as under: * Firm irrevocable purchase order / tripartite agreement should be in place. However this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable....
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.... order / invoice has been produced. * AD bank should be satisfied with the bonafides of the transactions and should consider the Financial Action Task Force (FATF) Statement before handling the transactions; * The Invoice should contain a narration that the related payment has to be made to the (named) third party; * Bill of Entry should mention the name of the shipper as also the narration ....
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....that the related payment has to be made to the (named) third party; * Importer should comply with the related extant instructions relating to imports including those on advance payment being made for import of goods. --Reply By: Ryan Vaz The Reply: Your transaction can generally be handled in IDPMS as a third-party payment import transaction. In your case: Item Party Importer India entity....
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.... Ordering/Intermediary entity USA group company Actual supplier/shipment origin Australia supplier Goods movement Australia India Payment remitted by India entity To USA office This is permissible subject to: * proper documentation, * AD bank approval, * declaration of third-party payment arrangement. In IDPMS, the Bill of Entry will be matched against remittance made to the USA entity ....
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....under third-party settlement documentation. <br>***<br> Discussion Forum - Knowledge Sharing....