Kindly clarify, can we make a payment in INR to Indian Company on behalf of a foreign customer and then later on claim the currency through debit note from Foreign Customer? Will the payment be a violation of FEMA ACT?
18 August 2008
The payment on behalf of the foreign customer should not be made from the indian company untill & unless it is for a legitimate business purpose. Other provisions of Income tax act & other laws should also to be taken care of.
CAclubindia
