TO CARRY SPARE PARTS WHILE TRAVELLING

[SURYAKANT MITHBAVKAR]

Our technician carry some spare parts while travelling aboard for installation/service purpose. While doing installation technician has use that spare parts and customers paid for that in US Dollars can we book that US Doller in our books showing export sale of Spare and deposit in Bank whereas no evidence available to show export like shipping bill, etc. kindly give us advice under INCOMT TAX LAW

[natesan rajendiran]

Under Income tax law taxability depends on the residential status of a person.You have not mentioned the residential status.Moreover you must also mention about your business connection,agreement for execution of works contract if any etc.For payment connections one should also keep in mind FEMA provisions.

AI Summary

Taxability depends on residential status; assess business connection, contract terms and FEMA compliance for foreign payment.
Taxability of foreign-currency receipts for spare parts used abroad depends on the taxpayer's residential status, the existence and terms of any business connection or works contract, the proper classification as export sale versus services/works, and compliance with FEMA and foreign exchange requirements.