[Inpycon] Receiving funds from foreign sponsors

[Dhananjay Nene]

On Mon, Mar 14, 2011 at 5:25 PM, Ramdas S <ramdaz at gmail.com> wrote:
>
>
> On Mon, Mar 14, 2011 at 5:06 PM, Sreekanth S Rameshaiah <sree at mahiti.org>
> wrote:
>>
>>
>> On 14 March 2011 16:59, Anand Chitipothu <anandology at gmail.com> wrote:
>>>
>>> 2011/3/14 Sreekanth S Rameshaiah <sree at mahiti.org>:
>>>
>>> >>
>>> > If they can directly pay for any expenses related to the event, such as
>>> > travel bill, foot the food bill or pay to supplier for goodies, that
>>> > will be
>>> > great.
>>>
>>> I don't think that is possible. The suppliers should be in a position
>>> to accept foreign currency, even if does and if there any enquiry, it
>>> comes back to us.
>>>
>> Any commercial entity/ agency should be able to accept foreign
>> inward remittance. Law restricts non-profits from doing foreign currency
>> transactions.
>> Regards,
>
>  I have spoken to my CA, and he has provided couple of loopholes, all we
> need to do is show, the foreign entity as a collaborator, and take the bill
> in name of a local company, and then raise an invoice back to the foreign
> entity from the company.
>  There would be the small element of 10.3% of service tax involved,  which
> can be waived off under some clause, which has to be shown through some
> paper work. I think this should not be a problem.
>

Can we stick to solutions that work in letter and spirit please ?
Dhananjay

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