Law applicability - FEMA, VAT

[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

AI Summary

Legal Implications of International Transactions: VAT Exempt, Check FEMA Rules for Foreign Exchange Limits A participant inquired about the legal implications of a transaction involving purchasing goods in Europe and selling them in Dubai, with payments processed through an Indian account, while the goods do not enter India. The response clarified that VAT does not apply to international transactions. However, under FEMA, foreign exchange regulations might require prior approval if the outgoing funds exceed permissible limits. The responder encouraged further discussion to explore the issue.