Company X(Indian company) has appointed a person on his salary payroll and this salary person is promoting the Brand of company Y (Foreign Company).
Company X raise the Dr note to company Y for this salary and other expenses relating to the Brand promotion in India.Company received the payment in Foreign Exchange .
Will this come under Export of Service.
Yes
Dear Rajendra,
Is there any Commission or other income is received by X co. from Y co. for the service provided? I mean to say whether the service is with any margin of profit or free?
The essensce of the agreement important. If for developing the brand then it comes under BAS - recepient based where the benefit accrue to the foreign co. It is an export.
If the contract is one where person is provided the service is in India and therefore not an export even if recived in CFE.
Shyam Joshi & Associates
Pune
B.Com
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Karia Overseas
Ahmedabad
CA
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CAclubindia
