RAJENDER (ACCOUNTANT) (40 Points)
29 September 2009Company 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.
Gautam Joshi
(Partner)
(361 Points)
Replied 30 September 2009
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?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 03 October 2009
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.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
