Payment for Purchase of goods from abroad.

Save Share

This query is : Open

CA..Nissha ...... (Querist)
Follow

16 February 2009 Sir,
One of my Clients who is a non resident in UAE has sold goods to Indian Company for 15 million dollors.and now the company wants to make payment for the same.
My Question is that will tax be deducted for the payment of goods and if so which section is attracted.. Also if there are any RBI Regulations of the same.

Thank you.

Ronak Desai

Ronak Desai (Expert)
Follow

17 February 2009 In case of purchase of goods, no section of Income Tax is applicable for TDS since TDS is applicable on payments towards services mentioned in the specified sections of Income Tax, 1961 and sale of goods is not covered in any such specific section. Hence, TDS need not be made.

As far as remittance of consideration is considered, the specific provisions of FEMA for remittance on capital account and current account have to be reviewed.

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