Fema query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2011 Dear sirs,

A non resident company-A sells goods to independent agents in India. A non resident ship-B in Indian waters requires some goods. B contacts A who in turn buys goods from the agents and the agents deliver them to B. Payment is received outside India by A from B.

Please explain if there can be any Fema implication arising from the above transaction? Whether the said transaction qualifies as current account transaction?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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20 October 2011 Please check that the money is exchanged between A and its agents and is not squared off for the two separate entries.

There might be some issues in taxation which need to be carefully evaluated.

Anuj
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