23 April 2011
Question: XYZ Pvt Ltd registered in India who is importing raw materials from ABC Enterprises who is registered outside INDIA. ABC Enterprises supply materials to XYZ PVT LTD at site. The expenses of customs duty, transportation charges, service tax and any other charges is born by ABC Enterprises. XYZ PVT LTD paid material cost, customs duty, transportation charges, service tax and anyother charges to ABC Enterprises after 30 days of delivery of materials. So, is there any custom / FEMA violations in this transaction.
04 June 2011
Payment for import can be made within six months of receipt of material. Still I feel your question needs clarification. The imports are on the basis of FOB or CIF basis. How can a foreign entity pay customs duty in India ? For Imports/Export you have to be registered with Indian Customs as well as IEC no. isssued by DGFT.
CAclubindia
