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Kumod RANJAN JHA   16 June 2017

Fema and tax

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 Concern 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


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 1 Replies

Dr J C Vashista (Advocate)     17 June 2017

It is a commercial query for which your company has its own legal cell to advise you, however, if it (legal cell) is not there you should avail professional services of a local lawyer.


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