Someone kindly help me out in accounting the following transaction and understanding the legal implications, things to take care.
1. My client is receiving money from his buyer in Indian rupees locally in his current account.
2. He is transferring the money to an importer (based in same state) for importing the product from Germany to UAE (on behalf of buyer in india)
My client is not receiving any product here or not directly selling the product. His nature is that of an intermediary/agent. However he insists that he needs to the transaction through his bank account and keep his margin. He is having a large margin and he doesn't want his buyer to be in direct contact with his supplier. The amount involved is between 5-6 Crores.
Kindly help me out in understanding what all legal implications this will attract and guide me on how to account this.
CAclubindia
