Applicability of Section 297 on transaction with foreign Com

X Limited wants to enter into partnership with Mr.Y in the profit sharing ratio of 9:1 under the name of X Enterprises

a) Can X Limited enter into a partnership with Mr.Y ?

b) Does X Limited require to take a central government's approval for making transaction of purchase of goods or services from X Enterprises(Partnership Firm) u/s 297 of the companies act, assuming that X Limited has paid up share capital of more than 1 crore and Mr. Y is neither a director, employee or relative of the director or employee ?

Sec 297 is not applicable to foreign companies because 297 is applicable only to a contract with a

- director of the company

- his relative

- a firm in which such a director or relative is a partner or any partner in that firm

- a private company of which the director is a member or director

and private company means a company defined in Sec 3.

- Mathi Dada

1) Whether sec.297 applies if both the companies are private limited

Applicable.

Whether service tax is applicable on foreign companies providing services like Installation etc to an Indian company for the goods imported by Indian company from same foreign company.

If yes who is liable to pay for it?