Question ID : 188

FDI

Facts: A foreign company wants to do busess dog sales on consignment basis by ablishg a 100% subsidiary company dia. The proposed
entity will receive goods from various suppliers on consignment (not purchases)basis and sell them to ailers and consumers on their behalf.

Its major source of come will be commission on consignment sales made as a consignment agent along with certa fixed charges on monthly basis for takg care of their stocks and providg frastructure facilities to the consignor.

Query: Will the proposed activity be covered under service sector?
If yes Then will it be covered under 100% FDI under automatic route?
If No then under what sector it has to be cssified and how much FDI is allowed such a case?



'

Post Your Answer

Please login to post your answer.