Tuesday, March 11, 2025 | 11:16 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Payment must be made against accepted bill of exchange: Expert

It is the obligation of the original importer to remit the payment to the foreign supplier

shipping, ports, port, exports, imports
Premium

The export of components by the Indian party to the foreign supplier against receipt of payment in foreign exchange for full value of components

TNC Rajagopalan New Delhi
We imported some goods from a Chinese supplier on CIF basis at 60 days’ credit. We accepted the bill of exchange drawn by the supplier sent through our bank and took the transport and insurance documents. However, the ship sank and we withheld the payment. Later, we claimed marine insurance and received the payment from the insurance company. Now, we are unable to send this money received from insurance company to the supplier as our Chartered Accountant says he cannot issue Form 15 CA-CB. What is the way out?

First, under the Negotiable Instruments Act, 1881, you cannot withhold payment

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in