Income tax payment

CMA. Rakesh Kataria (Practising Cost Accountant)   (531 Points)

31 May 2011  

KAG ( based in Mumbai ) is the companies doing international business, Buying fabric from China and selling it to buyer from Bangladesh,

Bangladesh buyer open 120 days transferrable LC to KAG Mumbai and KAG transfer LC to China partially by keeping the margin.

Fabric shipped directly from china to Bangladesh directly and shipping documents moved through KAG Bank in Mumbai to Lc issuing bank in Bangladesh.

Bangladesh bank accepted the documents and trade transection completed.

Now payment will come after 120 days as per the LC,

Pl. advise KAG needs to pay advance tax when transection completed or advance tax will be paid after receipt of the payment .