Jayanta Bandyopadhyay (310 Points)
12 September 2023While filing shipping bill alongwith Proforma Invoice, Kolkata Customs is asking for Purchase Invoice of subject shipment. Since we are having many sister LLPs and Companies, and this is sourced from Group Company [ export thru another sister concern] , would we invite any problem? Additionally, we have marked up 55% profit on export invoice. Is there any cap on profit? After all, we are earning forex and remittance thru banking channel only.
Kindly advise.
Regards
Jayanta Bandyopadhyay
Kolkata
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 19 September 2023
If sale and purchased ,including import and export, between sister concern or associated person the transaction should be at arm lenght price to avoid over and under valuation problem.Proper declaration of the relation betwee seller and buyer should also be given to the Customs in case of import export transaction.
Here quantum of of profit or earning of foreign currency is irrelevant.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 19 September 2023
If sale and purchased ,including import and export, between sister concern or associated person the transaction should be at arm lenght price to avoid over and under valuation problem.Proper declaration of the relation betwee seller and buyer should also be given to the Customs in case of import export transaction.
Here quantum of of profit or earning of foreign currency is irrelevant.
CAclubindia
