Kindly advise
Case:-
EG:- "A" a Indian Company Purchases Computer Hardwares from "B" a foregin company which has no physical presence in India. "C" is the representative of "B" who is functioning in India to co-ordinate with "A".
B ltd pays a certain amount to A ltd as Market Development Fund which is to be paid to C.
Since C doesnt have dollar account the funds is being routed through A to C in INR.
A receives it from B as Market Development and pays to C it as Reimbursement.
Altd doesnt charge any commision for this transaction, but to strengthen & maintain the relationship with Bltd this ancillary work is being undertaken by A.
For A Ltd:
Kindly advise does the above transaction meant to attract any law or is their any liability part with Altd for carrying such transaction.
Did A ltd get attracted under Hawala or FERA or FEMA or any Tds liability attached to it.
Also suggest ways to make this transaction more geniune.
CAclubindia
