My client getting project from Dubai has mention below details, can you help on this queries asked..my client name is Anand and he is MD of Pvt Ltd company..Now he got this project and he asked query has given below sir, can u help me on this sir.....
My client pursing a project with a client in Dubai but work to be executed in across India.
1)Suppose my total quote is for 1000 AED or 13356 INR . How should the tax value be done. ?
2)Is there any contract text specific to STPI to be done ?
3)Is this an Export Income ? (because work to be executed is in India). Can our company do it ?
4)How will this income/expense shown in book of accounts. This project needs traveling across India. So all these costs need to be done as part of expense towards execution. In my final book of accounts, I need a correct link between income from this client and actual expense towards that.
5)Do have any sample quotations which I can use ?
Need information for above query as soon as possible..
11 February 2012
From the query it seems it is joint venture. . Since work is to be performed in India and nothing is going outside India; hence it is not an export. . Since no export is there and money is to be paid by the party residing outside India hence books of account are to be maintained in normal manner. . From your question; I presume that the project is one type of charity which is to be undertaken across India. . If it is so; then better treat the party as "sponsor" for charity and form one NGO. Necessary approvals from government authorities are required.
CAclubindia
