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We had concluded a contract with a Malaysian firm and got an advance of 3500 USD during Jun 2008. However there was ban of the export of the commodities in Jul 2008
However the buyer waited for relaxation of the ban from India. Now the quote is very high and the buyer wants refund of 3500 USD
Now the seller says he will refund 3500 USD which was received Jun 2008 and at the time the exchange rate was Rs 40/ against the dollar. He received Rs 140000
He would like to refund of Rs 140000 now which should be converted to the exchange of USD as on today.
Now the exchange rate is Rs 52 against 1 usd. Thus he would like to remit only 2692 USD to the buyer.
Please advice
Free Member, Joined :01/12/2004
No of Topics Posted : 3
Reply/Comments : 1
hello there
I think you must talk to the party. it has to be solve mutually.
because in this case you have not done business so you make no profit right.tell the party to think from your side &i dont think so it is a any problem to you.
thanks vikrant goyal
greenish decor
Free Member, Joined :06/01/2008
No of Topics Posted : 0
Reply/Comments : 1
At the time of remittance, you have received an amount of USD 3500. When you have not been able to fulfill the commitment, same has to go back to the buyer. In fact, he should be getting interest amount also for all this time.
Either you fulfill your commitment with the same quote or give back the amount intact. Just because currency has come down, you cannot say that you will return only this much.
As a businessman it becomes your duty to give back the amount in full. At least your buyer is magnanimous enough Not to ask for any other charges. Think of long term and act. Advance payers are not easy to get nowadays.
Reliance Marketing & Services Co LLC.
Ruwi, Oman
Free Member, Joined :12/08/2006
No of Topics Posted : 2
Reply/Comments : 32
Dear Mr.Rama Lingam Pillai...
Agreed with your exchange rate concept...But You just ask your self since the USD currency went strong agains INR now the exchange rate is 52.
Just imagine if the USD went further weaker for ex RS 36 against 1 USD.
In that case you have to refund 3888 USD to your buyer will you do that ? or you will just send 3500 USD exact amount what the buyer send you in the month of June ?
Hope you can understand what i m trying to say ..now u have to decide n do accordingly.
Be always proud to be an Indian ! let the whole world recongise us as the best Traders !Jai Hind.
LGVG IMPEX TOTAL LOGISTICS SDN BHD
Kuala Lumpur, Malaysia
Free Member, Joined :12/10/2008
No of Topics Posted : 1
Reply/Comments : 3
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