Sir
Is there an obligation on a company to pay customs duty on the machinery bought in country X with the approval from RBI in terms of the provisions of FEMA to buy machinery and lease out the said machinery in that country namely X itself wihout physicaly brinhing the machinery into the country. Pl advise with relevant provisions.
Customs Duty Not Applicable on Machinery Leased Abroad Without Import to India; RBI FEMA Compliance Required. A query was raised about the obligation to pay customs duty on machinery purchased in a foreign country, with approval from the Reserve Bank of India (RBI) under FEMA provisions, when the machinery is leased out in the same foreign country without being physically imported into India. The response clarified that customs duty is applicable only when goods are imported into or exported from India. Since the machinery is not brought into India, customs duty does not apply. However, compliance with any RBI conditions under FEMA is necessary. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
