Foreign income

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nadeem (Querist)
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03 March 2013 my friend sends goods from india to a foreign country (say south africa) . these goods are then sold in south africa in a fair . goods include indian girls dresses (traditional),chappals,mobiles,sarees etc.. they export these goods through some other exporter, which is a third party. it just exports these goods as if it were his goods and charges certain commission on it . my friend then sells these goods in South Africa and gets back payment from havala system . plz help me that how to treat such income as per income tax act ...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 March 2013 " Hawala" is dangerous thing.
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Do not try to treat the income as taxable income. If you really want to treat the person as your friend -advise him to do the business through proper channels.
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