Hi. My company is in Belgium. We don't have a branch in India. We are planning to hire some associates as contract staffing through a consultancy in India. In which currency the monthly invoice payment need to be made ? In INR or EUR ?. Will there be any tax implications for the Belgian company in India if they pay in INR ? Can they do wire transfer or Do they want to open any account in India to do this transaction ?
2 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 20 June 2021
Payment should be made in EUR by foreign company and that should be exchanged in INR by the staffs in India through respective SBI branch of foreign exchange.
A special account should be open for foreign transfer or wire transfer may also be applicable.
No there will be no tax implications on Belgium company as it is an foreign company situated outside India
A special account should be open for foreign transfer or wire transfer may also be applicable.
No there will be no tax implications on Belgium company as it is an foreign company situated outside India
Prachi Bansal
(3129 Points)
Replied 23 June 2021
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