Law applicability - FEMA, VAT, Other Topics

[BAL KRISHAN GARG]

Sir, A is having TIN no.in Delhi and he is having one office space out of india in bangkok.Now he has some deal whereby he wants to purchase from eaurope and sell in Dubai .What are the legal complications here as the goods will not come in india the material will be sent directly from eaurope to Dubai . the payment will be made in our favour by the purchasing party and the payment will be made from our account to the seller . now the question is whether there is any law applicability relating to the deal with regard to FEMA , VAT , etc . BAL KRISHAN GARG

Posts / Replies

[Rama Krishana]

Since this a international transaction, the provisions of VAT can not be applied to these transactions. The provisions of FEMA are not prohibiting such transactions unless there are foreign exchange outgoing which may require prior approval if exceeding the maximum permissible limit. You are also requested to submit your understanding and view on this issue to discuss and explore this issue further.