India eases forex reporting rules for small value service exports, imports

The Reserve Bank of India on Tuesday notified changes to foreign exchange reporting rules for small-value services exports and imports, exempting resident individuals from declaration requirements and introducing a threshold of 1 million rupees for certain reporting obligations.

Here are some details:

– Resident individuals exporting services will be deemed to have submitted the Export Declaration Form (EDF) once they provide the required payment information to their authorised dealer bank for crediting the inward remittance.

– Non-individual exporters will receive similar treatment for service export receipts of up to INR 1 million. For larger receipts, existing EDF requirements will continue to apply.

– The Indian central bank has also narrowed reporting requirements for imports of services.

– Authorized banks will be required to enter transaction details in the central bank’s imports reporting and monitoring system only for importers other than resident individuals and where the invoice or contract value exceeds INR 1 million.

– The original rules governing reporting requirements were notified earlier this year and went into effect starting October 1.