Abroad warehouse

Hi Bhavesh,

IN MY OPINION (other friends - kindly rectify me if Im wrong) - purpose of warehouse and branch is different. Warehouse is just to store the goods and supply it as per demand. No profit element is involved. Whereas, in case of branch, goods are supplied to them at cost and such goods are sold by branch after adding their profit.

In respect of your first question - whether auditee have warehouse / branch in Germany, doesn't matter, it will definitely be benefited to company. However, 'Cost Benefit Analysis' has to be made.

In respect of second question - if warehouse is considered as branch and accounting is also done, then it must be for internal control purpose.

In respect of third question - in Germany, duties will be imposed (subject to their respective customs acts) but in India, it will be treated as exports and duty will be NIL.