Export of goods and services from India is governed by Section-7(1)(a) & (3) of FEMA read with Notification No. G.S.R. 381(E): dated May 3, 2000 v.i.z. FEM (Current Account Transactions) Rules 2000 further read with FEMA Notification No. 23(R)/2015-RB dated January 12, 2016 v.i.z. FEM (Export of goods and services) Regulation 2015. RBI from time to time issue a list of exporters who are in RBI cautious list are those exporters who violate FEMA rules and regulations.
Here in this article, we talk on some very interesting issues Caution List of Exporters.
(i) To realise and repatriate the full value of goods/software/services to Indian within 9 months from the date export OR apply for extension of time and if unable to being back the payment Apply for regulatory write off.
(ii) To surrender Export receivables to an AD within 21 days from the date of shipment.
(iii) To complete export obligations within specified time depending upon the nature of goods in cases where advance is received against Exports. OR refund the advance within one year from receipt of advance.
For the exporters of goods/software/services, any non-compliances of any provision of Foreign Exchange Management Act (FEMA) may have far reaching consequences not only under FEMA but also under tax laws. One needs an integrated efforts to ensure unrecoverable financial loss and loss of repute to include in Caution List of Exporters.
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