Regarding FEMA & Merchant Account

Regarding FEMA & Merchant Account

Planning to start a business where I sell custom statues of famous characters from movies/comics. The statues are getting manufactured by a company located in China.

Once the statues are ready to ship, they will be shipped directly from China to the customers Address located around the world. My customers are mostly foreign customers, and a very few Indian customers.

Here’s the problem,I am banking with a current account with HDFC and when I have to transfer payments to my supplier company in China. using foreign outward remittance, the bank says that i have to submit BOE(Bill of entry) within 6 months of outward remittance.but Explained to them that the statues don’t come inside India, it directly transfers from China to foreign customers, so i cannot have a BOE. How do i proceed to do my Business. Kindly advice!

Asked 1 year ago in Audit

One possible solution to the challenge you are facing with HDFC bank is to look for other banking options that are more flexible and better suited to your specific business requirements. You could research other banks in India that offer foreign outward remittance services and see if their documentation requirements align better with your business model.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

CA, Delhi

Available Now

349 Answers

7 Consultations

Talk to Shubham Goyal NOW!

In a reply to the bank you should quote relevant section of Customs Act 1962 which does not require generation of BOE in India in such cases. You should also contact to your CHA/transporter.

Give an undertaking to the bank for such cases

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora

CA, Delhi

4950 Answers

1105 Consultations

Talk to Vivek Kumar Arora

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!

Ask a CA