Kumod RANJAN JHA 16 June 2017

Fema

My company(X Ltd -Indian Comapny) has been issuing orders to a Singapore Based Co.(Say F Ltd.) over the years for technical Services.

Their Technician have been coming to India to provide us the technical services.

We pay them in Foreign Currency Remmitance after deduction 10 % TDS (under applicable DTAA and Indian Tax laws.We comply all provisions of FEMA in this regard.

However ,lately the Technicians coming to us seemed Indian. We enquired and Found that they orinally belong to a Indian Set up(say I ltd) of the Singapore Co .(F ltd).

However the Invoice that we receive is in name of F Ltd only.

We do not know what arrangement F Ltd and I Ltd have got in between them.

Our Cocern is-- 1. Are we Infringing any FEMA provisions?

2.Are we required to take any steps or move on as we have been doing.?

Reply with Reference to Provisions will be appreciated.

Regards

CMA K.R.JHA

Reply Follow

1 Replies

Suneet Gupta (www.vashiadvocates.com) 17 June 2017

If you are getting an Invoice from a Non-resident, Non-Indian Company, then you can continue paying them, after complying with the applicable Income Tax and FEMA laws. It does not concern you whether the individual coming to service your request is Indian or Non-resident. The service provider in your case is not the individual but the Singapire based Company.