Ramesh C Behera (Head- F&A) 03 May 2018

Inter company invoicing

One of my client has to raise an invoice with its parent company in HongKong. The invoicing shall for support services for laisoning for Sales activites in India.

The client want to Bill in two distinct terms, a fixed amount monthly to cover regular monthly expenses, and a % of sales amount as sales commission.

My question is :

1. Can he enter into an agency agreement:

2. Can it be a commission Agreement

Is there any tax risk involved if the above method is followed?

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4 Replies

R.Ramachandran (Advocate) 03 May 2018

So, your client, wants to avail free legal service here, even though he is doing commercial activity?

I would advise that your client should obtain proper legal advice by revealing complete facts, as the tax implictions are huge. Better to take care in advance rather than to repent at leisure.

Ramesh C Behera (Head- F&A) 05 May 2018

Dear. Mr. Ramachandran, Thanks for your advice. My client has already in the process of taking a legal advice. I would like to hear from the lawyers' club opinion from esteemed members.

Ramesh C Behera (Head- F&A) 05 May 2018

Dear. Mr. Ramachandran, Thanks for your advice. My client has already in the process of taking a legal advice. I would like to hear from the lawyers' club opinion from esteemed members.

Ramesh C Behera (Head- F&A) 05 May 2018

Dear. Mr. Ramachandran, Thanks for your advice. My client has already in the process of taking a legal advice. I would like to hear from the lawyers' club opinion from esteemed members.