Forigen exchange
This query is : Resolved
12 December 2013
Hello !!
One of my client is dealing with software business and they frequently go outside India for business purposes..for this purpose they buy Foreign currency to meet expenses there (from company only) At the time of buying they will issue a letter stating that "this currency will be used only for business purposes"..
However My Questions are:
1) Can an any employee use the same currency for his personal purpose ??? If so is he liable to repay the same to the company in Foreign Currency or in INR ???
2) If Company Receives the same in INR means will it leads to sale of Currency (Indirectly) ??? and treatment of Service tax claimed on it as input ??
3) Purchasing currency on behalf of employees and receives money will it leads to violation of FEMA Act ??
Note :
1. No Profit on sale of Currency has been made..
2. Company Doesn't have Registration for sale of Currency.. Kindly help me out
Read more at: https://www.caclubindia.com/experts/experts_display_list_unresolved.asp?mode=open&offset=7#.UqlAKXC6R5I
One of my client is dealing with software business and they frequently go outside India for business purposes..for this purpose they buy Foreign currency to meet expenses there (from company only) At the time of buying they will issue a letter stating that "this currency will be used only for business purposes"..
However My Questions are:
1) Can an any employee use the same currency for his personal purpose ??? If so is he liable to repay the same to the company in Foreign Currency or in INR ???
2) If Company Receives the same in INR means will it leads to sale of Currency (Indirectly) ??? and treatment of Service tax claimed on it as input ??
3) Purchasing currency on behalf of employees and receives money will it leads to violation of FEMA Act ??
Note :
1. No Profit on sale of Currency has been made..
2. Company Doesn't have Registration for sale of Currency.. Kindly help me out
Read more at: https://www.caclubindia.com/experts/experts_display_list_unresolved.asp?mode=open&offset=7#.UqlAKXC6R5I
13 December 2013
It should buy Forex from authorised dealer. Unutilised Forex should be returned back to dealer. Forex for employees should be seperately obtained.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
