Our co. has entered into contract with a foreign co. for importing cranes and payment will be made in Dollar.
During the technical discussion it was decided that the electrical items(like cable, fuse, swithches etc) should be indian manufactured only. The foreign co. has agreed to supply imported equipment from outside India and electrical items from india. But it will take whole payment in Dollar including those items which will be procured by them from India.
Whether such transaction is permissible by RBI and under FEMA.? If yes, whether any permission required from any authority.
regards,
SANJAY
CAclubindia
