Fema

This query is : Resolved

ashish (Querist)
Follow

21 April 2018 Hello,

Please address my query :-

there is one Indian based company which has opened another subsidiary in Dubai as consignee through which they are selling goods to another country like Singapore.After then singapore based customer make payment in dollars to consignee directly i.e USD 50 M and later on Dubai based company send USD 30 M to India and retain the rest of the amount.

what is the compliance and other requirement of FEMA and RBI comes here ?

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

22 April 2018 See the following requirements of FEMA. Only actual expenses stated below can be deducted lumpsum deduction not allowed.
(i) The agents/consignees may deduct from sale proceeds of the goods expenses normally incurred towards receipt, storage and sale of the goods, such as landing charges, warehouse rent, handling charges, etc. and remit the net proceeds to the exporter.

(ii) The account sales received from the Agent/Consignee should be verified by the AD Category – I banks. Deductions in Account Sales should be supported by bills/receipts in original except in case of petty items like postage/cable charges, stamp duty, etc.

(iii) In case the goods are exported on consignment basis, freight and marine insurance must be arranged in India.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now