Payment for the Purchase of Capital Asset : FEMA
This query is : Resolved
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27 August 2020
Dear Team,
We are about to purchase a Heavy Machinery from vendor in Japan. The machinery will not be delivered to India but will be stored in the warehouse of the seller itself. the seller will charge the rent from us for storing this machinery in their warehouse. This machine will be capitalized in our books of accounts. As the machinery is not physically coming into India , there will be no Bill of entry (BOE) filed. how can we make payment to vendor in Japan for selling us the machinery based on the Invoice only. what are the GST implications on this transaction.
We are about to purchase a Heavy Machinery from vendor in Japan. The machinery will not be delivered to India but will be stored in the warehouse of the seller itself. the seller will charge the rent from us for storing this machinery in their warehouse. This machine will be capitalized in our books of accounts. As the machinery is not physically coming into India , there will be no Bill of entry (BOE) filed. how can we make payment to vendor in Japan for selling us the machinery based on the Invoice only. what are the GST implications on this transaction.
27 August 2020
What is the purpose of keeping the machinery in their warehouse. When it will be imported.
27 August 2020
Machine will never be imported in to India. Purpose is Business Promotion and Development and testing for future.
27 August 2020
For import of machinery only FE remittance allowed.
27 August 2020
but machinery will not come to India and we need to make the payment , can we take RBI approval for the same?
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