Export directly form UK to UAE via Indian company

[Ezudheen P]

One of our foreign Buyer located in UAE want to import a Machinery form United Kingdom through our company

1. Buyer located in UAE want to do the transaction through Letter of Credit

2. We have to buy the item from an Indian subsidiary of an MNC located in United Kingdom

3. We have to pay the amount in to Indian subsidiary in INR

4. The Indian subsidiary then arrange the shipment directly form United Kingdom to UAE

5. Once the shipment reaches in UAE we will get paid in Dollar

Does this transaction is legal/valid in India?

How can we execute this transaction without violating rules and regulations?

AI Summary

Indian Company Facilitating UK-UAE Machinery Export Must Follow RBI 10% Profit Rule and Invoicing Guidelines A company in India is facilitating a transaction where a buyer in the UAE wants to import machinery from the UK through them. The transaction involves payment in INR to a UK subsidiary in India, with direct shipment from the UK to the UAE, and payment in USD upon delivery. A respondent advises this is a merchandise export under RBI guidelines, requiring a 10% profit margin and specific invoicing procedures. The Indian company must consult their bank due to the lack of Indian customs documentation. Additional questions about taxes and obtaining a Certificate of Origin from Indian authorities are raised.