Bank Charges deducted from Foreign Payment

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..... Bank Charges deducted from Foreign Payment
Query (Issue) Started By: - Ashok Chopra Dated:- 7-9-2016 Last Reply Date:- 18-9-2016 Customs - Exim - SEZ
Got 5 Replies
Customs
Respected Forum, I am manufacturer-exporter receiving short foreign payment of $ 25.00 on account of Bank Charges of Foreign Bank. and in another case i am discounting bill from foreign bank, they are sending me p .....

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..... ayment after deducting their charge and interest. It is not clear to me whether i should return back proportionate drawback to custom department on account of deduction made by foreign bank on account of bank charges and bank interest. Please guide me accordingly. Also please provide me any clarification/guidlines/notification of any department or court order in this regard. Thanks and regard .....

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..... Reply By YAGAY AND SUN: The Reply: Please read Rule 16A of the Customs, Central Excise & Service Tax Duty Drawback Rules in this regard and it is better to be conservative in this matter and pay the duty drawback along with interest to the customs department. Reply By Ganeshan Kalyani: The Reply: Sir, in my view no amount of duty drawback received need to be paid back to the Govt. The reason .....

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..... is the consideration is received in full, it the bank charges which has been dedcuted from the consideration. Whether the bank first credits the full amount and then deducted bank charges or it pays you the net amount, the impact remains the same. This is my view. Thanks. Reply By Ashok Chopra: The Reply: Sir, Query No. 1 - .My banker in India received short amount for # 25.00 on account of ba .....

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..... nk charges of remitting bank (foreign bank) Query No. 2 - My banker in India received short amount for # 125.00 on account of bank charges and interest of remitting bank (foreign bank) as the export invoice has been discounted by me. I have an agreement with foreign bank. Both amount shown by me in books as bank charges and interest Reply By Ganeshan Kalyani: The Reply: Sir, in my view bank ch .....

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..... arges is not a criteria for reversal or to give back the drawback received. Thanks. Reply By Kishan Barai: The Reply: Agree with Ganeshan Kalyani Sir, bank charges is not a criteria for reversal or to give back the drawback received.
Discussion Forum - Knowledge Sharing .....

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