Posted On : 12 May 2024
Using IEC of my company for importing goods for another company
Hello CAClubIndia,
I've been importing goods from China and reselling in India. My sole-proprietorship firm has IEC for the purpose of commercial importation. I recently received a request from another company to import goods for them using my IEC and firm. It work like they will transfer the amount needed for the purchase to my company bank account which I will use for the purchase. Once the goods are arrived to me, I will transfer the goods to them. As the company is owned by my friend, I will skip any profit for this deal.
My question is that if this needs GST to be collected and remitted by me from the other company as there is no active sales transaction being taken place?
Also, will this put any load on my shoulders in the form of Income Tax or any other taxes immediately or later?
Please suggest a good workaround after giving answers to my questions.
Thanks in advance.
CAclubindia
