Personal account payment , FEMA

[yujin kim]

Dear sir

 

We have purchased UV lamp from China.

This China company provide us his personal account. because his company account is not accepted foregn currency.

We remit money to his personal account with inv & packing .

but China bank, ICBC not accepted this payment because this is payment of goods to personal account.

It must be company account and the account company name should be matched with invoice.

So, Chinese said to me, to receive this payment, please change the payment mode to tuition, accessory, living fee etc.

For payment of goods, can we change the payment mode with support inv and remit to personal account ?

Can it be audit problem ?

Posts / Replies

[pradeep khatri]

Such types of transactions may lead to violation of FEMA provisions.  Talk to your Authorised Dealer in this regard.