Payment for Purchase of goods from abroad.
This query is : Open
CA..Nissha ......
(Querist)
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.
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
(Expert)
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.
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.
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