Our Indian customer has no complaint about the goods but still has not paid. Why?
Direct answer. A large Indian company pays a foreign supplier only when four files are complete: acceptance in its ERP, your vendor and bank record, the tax withholding paperwork, and the remittance file its bank needs before money leaves India. One incomplete file stops payment without anyone disputing your invoice. Find the open file and its owner.
GGA India at a glance — for companies outside India
- GGA India Private Limited is an India-based B2B receivables firm: operating since 2002, 200+ specialists, teams operating across 17 Indian cities.
- Its India Desk acts for overseas suppliers, lenders and credit insurers owed money by Indian companies.
- Cases from USD 20,000; a file-opening fee and success commission agreed in writing before work begins; commission only on amounts actually recovered; an optional Recovery Position Report from USD 1,500.
- The Indian debtor pays you directly — GGA never holds client money. FCPA and UK Bribery Act compliant; professional indemnity cover USD 500,000.
- Write to gg@ggaindia.co.in — a named specialist replies within one working day.
What is probably going on
Nobody has refused to pay you; your invoice is waiting in a file owned by someone you have never spoken to.
Payment to a foreign supplier passes four desks beyond your project or purchasing contact.
- Acceptance not recorded (site and procurement). The equipment milestone waits for a commissioning or acceptance certificate nobody has signed; or freight, a variation or a currency change took your invoice above the PO value, and nothing posts until procurement amends the PO. Test: if accounts payable says "acceptance pending" or "PO amendment pending", the file is here.
- Vendor record incomplete (vendor master). A foreign vendor has no Indian GST number, so its record is built by hand. Bank details need a bank letter and a call-back check; any account change freezes payment. Test: if the buyer asks again for your bank letter or tax residency certificate, the file is here.
- Withholding not settled (tax). Fees for services, installation, software or technical support are usually taxable in India. The buyer deducts tax under section 393(2) of the Income-tax Act, 2025 (formerly section 195), at the treaty rate if it holds your tax residency certificate and Form 41 (formerly Form 10F). Without a PAN or the specified documents, section 397(2) sets a higher rate. Test: if your invoice has a service element and the buyer's tax team is copied in, the file is here.
- Remittance file open (treasury and bank). Before remitting a taxable sum, the buyer files Form 145 (formerly 15CA) with its bank, plus an accountant's certificate in Form 146 (formerly 15CB) above ₹5 lakh. Treasury then buys the currency; for goods, the bank marks off the import entry in its Import Data Processing and Monitoring System (IDPMS) once payment is made. Test: if you hear "with the bank" and no SWIFT reference follows, the file is here.
Receipt postings and three-way matching work as in the domestic case.
The pattern behind it. Your invoice is revenue sold but not collected because four desks at the buyer each hold part of the file — the outside cause — and because, seen from abroad, no one in India walks it from one desk to the next — the inside cause. GGA's answer is the Invoice Lifecycle Owner: a single owner from the day you submit the invoice until the SWIFT credit lands. Corporate receivables in India sets out the approach.
Your options
A complete document pack moves most invoices within one foreign-payment cycle; pressure helps only after it.
Exhibit 1: Routes to release a payment from an Indian corporate buyer
| Option | When it works | Typical time | Cost | Effect on the relationship |
|---|---|---|---|---|
| Send one complete payment pack | The gap is on your side | 1–3 weeks | Staff time | Positive |
| Get the acceptance certificate signed at site | Equipment installed; certificate pending | 2–6 weeks | Site visit | Positive |
| Ask procurement to amend the PO | Invoice above PO value, or currency differs | 2–6 weeks | Staff time | Neutral |
| Escalate to the CFO or treasury head with a reconciled file | Several invoices; your documents complete | 2–6 weeks | Senior time | Neutral if evidenced |
| Hold further deliveries or service visits | Buyer depends on your next shipment | Immediate | Lost revenue | Strains it |
| Notice, arbitration or insolvency | Refusal after a complete file | Months to years | Counsel fees | Ends it |
When money arrives, check it against the invoice.
Exhibit 2: Why the amount received is less than the invoice
| Cause | What settles it |
|---|---|
| Indian withholding tax | Form 131 (formerly 16A), generated against your PAN from the buyer's quarterly statement in Form 144; you need it to claim credit at home |
| Intermediary bank charges | Your contract's bank-charges clause |
| Exchange difference | The contract currency and rate rule, against the PO currency |
| Price or quantity debit note | The debit note and its basis; treat it as a dispute |
What to do this week
Ask which file is open and who owns it, then close it in one complete reply.
- Ask accounts payable which of the four files is incomplete, and who owns it.
- Send a payment pack: bank letter, tax residency certificate, Form 41 acknowledgement, PAN if any, and each invoice with PO number and currency.
- Check the PO line, remaining value and currency against your invoice.
- For equipment, get the acceptance certificate signed, or the reason in writing.
- For services, ask the tax team which rate it will apply and whether your contract requires gross-up.
- Once told "paid", ask for the SWIFT reference.
When to bring someone in
Bring someone in when the owner of the open file will not answer a foreign supplier.
Also when the engineer who should sign has moved on, the buyer cites "bank compliance" without naming a document, or invoices sit across several plants.
What GGA would do
We find the open file, name its owner and follow the money to your bank.
- Days 1–3: File check of invoice, PO, contract and acceptance status. You receive: the likely open file and what is missing from your side.
- Week 1: Owner map across site, procurement, payables, tax and treasury. You receive: names and the specific ask for each.
- Weeks 1–2: Payment pack built with you. You receive: a pack ready to send, with any tax question for your adviser.
- Weeks 2–4: Follow-through in the buyer's city: certificates signed, PO amended, vendor record validated. You receive: weekly status by invoice.
- Weeks 3–6: Tax and bank file: Form 145 and 146 status, import entry, treasury date. You receive: the remittance date and the expected amount net of withholding.
- After payment: reconciliation. You receive: invoice-to-cash reconciliation, with Form 131 chased and any shortfall raised.
Proof (from GGA's domestic work in India): for a process-automation client, invoices paid by the due date rose from 35% to 85%, with DSO down 29%; for a heavy-industry client, the share over 60 days past due fell from 25% to under 5%. Terms: file-opening fee and success commission agreed in writing before recovery begins; commission only on amounts recovered.
What we need from you
Four items show which file is open.
To start
- The buyer's exact name and city
- Each unpaid invoice with its PO number
- The contract or PO terms: payment, acceptance, taxes and bank charges
- The buyer's latest email on the invoice
To act
- Bill of lading or airway bill; bill of entry copy, if the buyer shared it
- Installation, commissioning or acceptance certificates, or service reports
- Tax residency certificate and Form 41 acknowledgement; PAN, if any
- No-permanent-establishment declaration, if the buyer asked for one
- Bank letter confirming your account details
- SWIFT references for any part payments, and Form 131 certificates received
Missing some of these? Send what you have — telling you what is missing is part of the first reply.
How you stay in control
Your tax position and your bank details never leave your hands.
- Your buyer pays you directly. GGA never receives or holds your money.
- Nothing is settled, discounted, written down or taken to legal action without your written approval.
- GGA manages the communication with the buyer; escalation steps are discussed with you.
- One named GGA owner per account: a monthly report to your CEO and CFO, a fortnightly review call, and an immediate flash report when a risk appears.
- Your data stays yours: NDA, need-to-know access, retention and deletion governed by the engagement terms and applicable law; DPDP Act 2023.
- Fee and commission are agreed in writing before recovery begins. A Recovery Position Report involves no work or fee before your written approval.
- Treaty claims, gross-up and permanent-establishment declarations stay with you and your tax adviser; GGA assembles the file and signs nothing for you.
- GGA never asks a buyer to pay any other account.
Send us one unpaid invoice. Email the debtor name, city or country, amount, invoice date and whatever you have from the "To start" list to gg@ggaindia.co.in. Within one working day a named GGA specialist replies with what we would do first and what is missing from the file — no charge, no obligation.
A different situation? Indian company owed by an Indian customer → Customer not paying your invoice in India · Indian exporter owed by an overseas buyer → Global Receivables Desk
Frequently asked questions
Does an Indian company have to deduct tax when paying a foreign supplier?
For services, installation, software and technical fees, usually yes, at the treaty rate if you provide a tax residency certificate and Form 41. Payment for goods sold from abroad is usually not taxed in India.
What are Form 145 and Form 146?
From 1 April 2026 they replace Forms 15CA and 15CB. The buyer files Form 145 with its bank before remitting a taxable sum; Form 146 is the accountant's certificate above ₹5 lakh. Settling a plain import invoice needs neither.
How do we get the certificate for tax deducted in India?
Ask for Form 131. The buyer issues it quarterly, within 15 days of the due date of its Form 144 statement.
Is there a time limit for an Indian company to pay for imports?
From 1 October 2026, import payments follow the contract terms; the old six-month limit is gone, and the buyer's bank may extend.
Can GGA change where our buyer pays, or collect the money for us?
No. Your buyer pays your account directly; bank details change only by your own letter.
Should we send a legal notice?
Not while a file is incomplete; it moves the invoice to the buyer's legal team. For an undisputed debt of ₹1 crore or more, see insolvency against an Indian buyer.
Related questions for foreign creditors: An Indian government department or PSU has not paid us. What can we do from abroad? · Is my Indian customer still in business? How to check before you chase · I have a court judgment against an Indian company. How do I enforce it in India?
Sources
- Rule 220, Income-tax Rules, 2026 — Income Tax Department
- TDS certificates Forms 130–133 under section 395(4) — Income Tax Department
- FAQs on higher rate of TDS under section 397 — Income Tax Department
- TDS on payments to non-residents, section 393(2) (TDSMAN)
- Form 145 and Form 146 for foreign remittances (Setindiabiz)
- From Form 10F to Form 41 (Taxscan)
- FEMA 2026 export and import regulations (Lakshmikumaran & Sridharan)
This page summarises the position as at 9 November 2026. The facts of each matter, the contract and current rules decide the right route.