Advance Remittance for Import of Services: Bank Evidence Checklist
Advance payment to a foreign vendor creates follow-up risk: service must be received, tax/GST must be reviewed, and the bank evidence file should not stop at payment release.
For broader context, see the NRI, RBI and International Transactions Hub.
Advance remittance controls
| Stage | Evidence |
|---|---|
| Before payment | Agreement, proforma invoice, purpose note and approval. |
| Bank processing | A2/form details, purpose code and bank debit advice. |
| Tax/GST review | Withholding and import-of-service RCM analysis. |
| After payment | Proof of service receipt / final invoice. |
| Closure | Reconciliation of advance to expense/asset and bank record. |
For the connected rule, example or next step, see Foreign Founder Reimbursement: FEMA and Accounting Evidence Checklist.
Finance SOP
- Tag foreign advances separately in books.
- Set service-receipt follow-up date.
- Keep vendor correspondence and delivery proof.
- Reconcile advance with final invoice and GST/tax treatment.
- Escalate non-performance before ageing becomes stale.
For the connected rule, example or next step, see Form 15CA and 15CB for Foreign Remittance: Finance Evidence Pack.
Finin2min warning
Official sources used
This article is intentionally source-limited to official RBI / India Code material. Verify final filing positions with the latest FEMA Act, regulations, RBI directions, bank instructions and portal advisories before publishing.
- India Code: Foreign Exchange Management Act, 1999 official record
- RBI: Master Circular on Import of Goods and Services
- RBI: Miscellaneous forex facilities / current account transaction FAQ
For the connected rule, example or next step, see Education Fees Abroad: LRS, Bank Documents and Proof Checklist.
FAQs
Agreement, proforma invoice, bank forms, purpose code, tax note and later service receipt evidence.
Yes. Tax and GST treatment should be reviewed before remittance.
Escalate with vendor/bank/professional advice and keep evidence.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- FEMA & International Tax
- Official starting point
- www.rbi.org.in