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Clarity on payment in foreign currency to foreign contractor executing Turnkey Contract in India
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....larity on payment in foreign currency to foreign contractor executing Turnkey Contract in India<br> Query (Issue) Started By: - rakesh kumar Dated:- 27-2-2019 FEMA<br>FEMA<br>Sir , My clarification is....
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.... related to payment in Turnkey contract to be executed in India by Foreign Company . The contract will be a Work contract under GST regime .The Customer is an Indian customer and he would be required ....
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....to make payment to the foreign contractor.For execution of the project - the foreign contractor shall set up a "Project office" in India [Liaison office or Branch may not work in the current fact patt....
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....ern].The foreign contractor shall be supplying a turnkey project to the customer wherein the contractor shall buy all equipment/services and then resell/rebill to Indian customer.The payment is to be ....
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....made in India - as the foreign contractor would use the money to pay off the foreign/other vendors. The invoices shall be raised from the Project office of the foreign contractor in foreign currency. ....
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....I require following clarification: * As it is a work contract and invoices will be raised from project office located in the Rajasthan (India), where contract is to be executed . Whether Foreign con....
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....tractor can raise invoices in foreign currency under work contract ( Any relevant circular of RBI in this regard ) * Whether Customer has to full fill certain formalities for releasing the foreign c....
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....urrency payment under work contract .<br> Discussion Forum - Knowledge Sharing ....