We are entering into a legal contract with a foreign entity to be their collection agent for their online services,subscripttions and products sold in india. basically the amount for products sold will be credited to our indian bank account and we will swift them money on daily basis after deducting our commission.
1. As we are entering into contract as a company (not individual) will TCS 5% be applicable to be deducted on our swift/wire transaction to foreign entity as it is a trade (current account) transaction? or will banks deduct 5% TCS? or;
2. Will 7 lakh limit under LRS be applicable to individual buyers who are transferring money to our indian bank account?
so basically only question is applicability of LRS and TCS on our swift/wire transaction
thanks.
CAclubindia
