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(Querist)
19 May 2011 Dear Sir,
One of our clients is selling Italian Tiles in India. Now the supplier (Italian Tiles Co. ) wants to promot their products in India and they have asked our client to promot their products. For this, all expenses like office rent, manpower cost and other admin expenses will be reimbursed by the foreign co. However, they do not want to open any branch/ liasioning office in India.

Now in the above circumstances, can our client receive money from the foreign co.? Do RBI rules permit for this?

Is there any Franchise Agreement kind of thing undedr which RBI may permit the foreign exchange transfer (inwards) ?

Kindly advise me urgently.
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U S Sharma

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U S Sharma (Expert)
19 May 2011 as the expenses would be on account of the italian tiles only, so ask the vendor to reduce the price to the extent of sum spent on their promotion, by this way the buyer will get the money in discount form and spend the same in promotion which is deductible expense in their Profits and gains.
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