Home Forum FEMA Month 11 2023 2023 (11) This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
ROYALTY PAYABLE TO FOREIGN COMPANY BUT PAID IN INDIA - FEMAExtract Dear Experts, I have one query A Pvt Ltd, an Indian company has to pay royalty to B a foreign company to the extent of Rs.10 core. Now B company directed the A pvt ltd to pay this royalty amount of Rs.10 crore to C Pvt Ltd (Supplier of B company in India). C Pvt ltd will adjust entire amount towards export realisation to be received from B company. Now my questions are: 1. Whether A Pvt Ltd can pay directly to C Pvt Ltd? 2. If so, whether GST has to be paid and TDS has to be deducted? 3. Whether tri-party agreement required to do so? 4. Is there any problem for C Pvt Ltd to get this amount from A Pvt Ltd? Since export proceeds going to be received in India Rupee. Kindly clarify experts.
|