Sale from FREE TRADE ZONE
Manoj Tambat
(Querist) 29 March 2011
This query is : Open
My company Ace Solar Services is a DTA firm.
Ace Solar will import & stock the import consignment at Free Trade Zone warehouse.
The profile of Ace Solar Customers in India is as below -
1) SEZ based manufcaturing companies.(manufacturer)
2) 100% EOU Manufacturing companies. (Manufcaturer 100% EOU).
3) DTA manufcaturer companies.
The invoice to all the above different legal status companies will be raised by Ace Solar Services.
Sell to Manufcaturers having legal status as SEZ based & 100% EOU is easy to understand & have the invoice paid in Foreign Currency as this will be traeted as a High Seas Sale & Ace Solar is in a way doing the re-export to these firms.
However the issue to get the realisation of invoice in foreign currency for sales to DTA manufcaturing companies.
Ace solar being a Local Indian firm, although importer, will have to raise the invoice in INR. As even the DTA companies will not be able to transfer the foreign currency to Ace Solar account.
The above is my understanding. However you have the expertise from different segments of business.
Please advise me HOW IT IS POSSIBLE TO RAISE THE INVOICE & GET REALISATIONS IN FOREIGN CURRENCY FOR THE MATERIAL SOLD THROUGH Free Trade Zone warehouse.
