Payment in INR on behalf of a Foreign Customer
This query is : Resolved
18 August 2008
Dear Sir,
Kindly clarify, can we make a payment in INR to Indian Company on behalf of a foreign customer and then later on claim the currency through debit note from Foreign Customer? Will the payment be a violation of FEMA ACT?
Thanks
Kindly clarify, can we make a payment in INR to Indian Company on behalf of a foreign customer and then later on claim the currency through debit note from Foreign Customer? Will the payment be a violation of FEMA ACT?
Thanks
18 August 2008
The payment on behalf of the foreign customer should not be made from the indian company untill & unless it is for a legitimate business purpose. Other provisions of Income tax act & other laws should also to be taken care of.
24 December 2010
Yes the FEMA Act doesn't allow the same.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
