query on fema

Dear Friends,

Our Company is International Freight Forwarder , one of our  Indian  client wants  to deliver some goods  from country-A to Country-B, for this we want to deliver goods  through our overseas agents from County –A to Country-B & for such our overseas agents  raises  invoice to our company.
In relation to such shipment we will make payment to our overseas agents and for such activity we  will raise invoice  to our Indian client and collect the same.
Our question is that we can make payment to our overseas agent for such shipment since, for this there is no any goods move from Indian shore.
We are seeking advice whether we can make payment  to overseas agents for such activity under FEMA,1999.
Best Regards,
Advocate/ Senior Partner

Dear Sumit,

In this case your services are engaged by an Indian company to transport goods from on country to another outside India. For such purposes you are engaging the services of a foreign company for which service charges will hve to be paid. Therefore remittance of such charges through proper banking channels with genuine receipts will not contravene the FEMA.

Thanks, Ramakrishnan ADV



I agree with Mr. Ramakrishnan




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