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March 2014

A. P. (DIR Series) Circular No. 100 dated 4th February, 2014

By Gaurang Gandhi Chartered Accountant
Reading Time 1 mins
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Third party payments for export/import transactions

This circular has, with respect to third party payments for export/import transactions, made the following changes:

1. Removed the conditions that a “firm irrevocable order backed by a tripartite agreement should be in place”. This is subject to the following: –

a. Bank has to be satisfied with the bonafides of the transaction and export documents, such as, invoice/FIRC.

b. Bank has to consider the FATF statements while handling such transaction.

2. The limit of US $100,000 eligible for third party payment for import of goods stands withdrawn. As a result third party payments for imports can be made without any limit.

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