Sumit Phadnis (Lawyer) 15 January 2009

FEMA related query

Hello,

Our client ( X) is an importer of some equipment from UK based company (Y). There is one component of such equipment which is not manufactured by the Y so they order such component to Indian based comapny (Z) to deliver it to X. Here, Z sends invoice to Y for such component and Y pays it. And Y bills X for both equipment & component.

In such a case, whether our cleint X have to comply with FEMA regulations though the components are being manufactured in India and delivered within the boundries of India?

Thanks in advance.

Sumit Phadnis

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4 Replies

Manish Singh (Advocate) 16 January 2009

ys, you are bound to comply with the provisions of fema and rbi guidelines.

Sushil Kumar Bhatia (Advocate) 17 January 2009

Firm Y agreed to supply equipment to X and some component manufactured by Z Z Supplied equipment to X transaction in between Y and Z is covered under FEMA And FERA in this transaction permission of RBI is necessary ,moreover,you can see or download FERA and FEMA guidlines of RBI by search Goggle by Insert word FEMA all relevent information are in the sites.