Dear All
Our Company AB is into trading of various goods. Recently , We have got an order to suppy a Product to Japan. The product is only available in Canada. AB is incorporated in India
AB has recived in Inda advance against sale in USD from Buyer. AB Now placed the order from a Supplier from Canada to delivered goods directly in Japan. AB is going to pay the supplier from India utilising the advance recieved
What are the implication under FEMA and Custom / Banks on AB
Warm Regrds
Now AB is service provider and receiving commission in India -ST is applicable and TDS has to be bourned by AB in India.
Further advise may be given based on the documentation of all 3 company nature of tanscations
What is the role of AB in this transaction
AB is buying goods on prinbcipal to principal basis. There is separate purchase contract and sale contract. Hence it is a trading profit
V.K. Ranjan & Co(Chartered Accountants)
New Delhi
B.Com
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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Karia Overseas
Ahmedabad
CA
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CAclubindia
