Payment from foreign country
This query is : Resolved
11 July 2022
I am proprietor n will receive payment from foreign country in advance for purchasing spices from India n then sending spices in foreign country. What will be the tax consequences ,how should I do the transaction,should I change the constitution from proprietor to company, bcoz do you think changing constitution will help foreign party to rely on me more,plz reply
Thanks in advance
Thanks in advance
11 July 2022
No need to change the constitution.
Obtain IEC code and register with GST and submit letter of undertaking in GST portal so that no GST payable on exports.
Applicable customs duty payable.
Obtain IEC code and register with GST and submit letter of undertaking in GST portal so that no GST payable on exports.
Applicable customs duty payable.
12 July 2022
N for receiving tat advance from foreign country will I be liable to pay income tax
12 July 2022
No need to pay income tax on advance received.
Only on supply profit earned on export is taxable under income tax.
Only on supply profit earned on export is taxable under income tax.
12 July 2022
Advance which I am going to receive is to be shown as loan or it will be treated as income n so will be liable to income tax
12 July 2022
Show it as advance against supply not as loan no income tax payable on a.
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