Import and export of goods outside india

392 views 3 replies

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

 

 

 

 

Replies (3)

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

Ms. Shivani, ST is not applicable or expemt on this transaction since service is provided out of the indian territory.

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