Section 7 of FEMA : Section 7: Export Of Goods And Services

FEMA

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Explanation using Example

Imagine a company in India, "SpiceExport Inc.," that exports spices to various countries. According to Section 7 of the Foreign Exchange Management Act, 1999:

  1. SpiceExport Inc. must submit a declaration to the Reserve Bank of India (RBI) detailing the full export value of the spices shipped to the United States. Since the price is known, they declare the expected revenue from the sale.
  2. If the RBI requests additional information to ensure that SpiceExport Inc. receives the payment for the spices, the company must provide this as well.
  3. If the market conditions change and the RBI believes the full export value might not be realized, it can instruct SpiceExport Inc. to take specific actions to ensure the proceeds are received promptly and in full.
  4. Additionally, if SpiceExport Inc. also provides culinary consulting services to clients overseas, they must declare the payment details for these services to the RBI, just as they would for goods.
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