Please guide me in lights of RBI or FEMA rulings of the following quieries:
1.Can an Indian Trader sell his goods to African dealer who purchases the goods and makes remittance to the Indian dealer after the sale is incurred by African dealer. Is this the correct method?
2. The Indian dealer wants to give 2% of the purchase made by African as a commission to him. Can this be given as commission and in the form of credit note. Is there any restriction of Percentage and what is the correct method. I have heard that there is a restriction of 5% and the entity should be 3 years old.
3. Can the Indian dealer appoint African as his Consignee or his franchisee or Carry&Forwarding Agent. What is correct ?
Request to please enlighten with RBI/FEMA circular etc.