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

Guidance on Recording Export Sales Without Documentation: Consider Tax Laws, Residential Status, and FEMA Provisions for Transactions A technician carries spare parts abroad for installation or service purposes, and customers pay in US dollars. The query seeks advice on recording these transactions as export sales in the absence of export documentation like a shipping bill. The response highlights that under income tax law, taxability depends on residential status, business connections, and agreements. It also advises considering FEMA provisions for payment connections.