Topic: Looking for a business associate - DELHI NCR only (Read 1191 times)

I am not sure what was your question. Are you referring to the following quote:

"2. Entity C receiving cash without any sale of goods is liable to be prosecuted and moreover how will they transfer the cash amount?? It's havala only"

If yes, then I guess I answered that Entity C provides services.

And....you just avoided the topic...

But I respect the right of confidentiality and it is definitely your prerogative whether to disclose such information or not...good luck finding someone...  

Alright. Let me clear up the air here around the AML part. I didn't want to give too much details here because we are working on setting up something innovative.

But as per the hypothetical question above, here is what is going to happen:

1. Entity A takes services of Entity C
2. Entity C provides Entity A with an Invoice in USD equivalent Bitcoins.
3. Entity A complies by IRS rules to make payment in Bitcoin against that invoice.
4. Entity C complies with Indian tax laws by keeping invoice in records.
5. Entity B is a facilitator as Entity C is not very tech savvy.

You might say why not use an exchange? Well Indian exchanges charge very heavy fee for conversions(2-3%) and their conversion rates are not the best in the world. The math suggests that going the exchange way is as costly as using a simple wire transfer to Entity C. Why would we indulge in such lengthy processes if we can't save on our costs?

Further, I am not comfortable answering more questions about the business here. Simply because the business is not related to Bitcoin, but we are trying to use BTC as a medium of sending payments to India.

If you think its too risky for you to manage, you can stay away from this. If you think you'd be interested in doing some exchange, hit us up.

As per my understanding, the hypothetical transaction enumerated above is surely to be scrutinised by the goverment agencies. The reasoning for the same is to be understood at length which I cant do here, however, to briefly sum it up the following would be the reasons.

1. The counter entries cannot be documented by Entity B as it will receive bitcoins but when it sells the same there would not be any inflow of amount to be verified by bank.

2. Entity C receiving cash without any sale of goods is liable to be prosecuted and moreover how will they transfer the cash amount?? It's havala only

3. Associated enterprises comes under the ambit of Transfer pricing trench and this is a clear voilation of the transfer pricing laws as well.

To sum it up as per my view, this is nothing but a perfect example of money laundering as the tail of cash receipts cannot be shown in books by anyone and receipt of amount above Rs. 49,999/- in cash also requires PAN card.

These are a very small fraction of reasoning I have stated herein. There are many laws which gets triggered on the consummation of these type of transactions. I have already, at times, stated that a person should buy and sell bitcoins through bank amounts only. Rest one can do as one pleases but it may get that person in hot soup.

Hope my views helped and sorry I couldn't  elaborate on all the applicable sections and laws as it would be really a lenthy discussion.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252

Advocate Kanishk can answer these question best. Let hope, he's active and goes through this thread.

-Entiity A(USA) partners with Entity B(India)
-Entity A sends Entity B some Bitcoins on monthly basis.
-Entity B deposits equivalent amount in Entity C account which is associate of Entity A.

Questions:
1. If everything is done in legal manner like keeping record of Bitcoin transaction and depositing amount in verified account of Entity C. Then is it illegal to indulge in such transaction?

2. If entity b deposits equivalent amount to entity c in cash then?

3. If Entity A and Entity C is verified as per KYC norms then how does situation changes?

This question might sound trivial for now, but its forms base of future remittance market of Bitcoin.

Look forward to your comments.

Well I don't mean to say Bitcoin to INR is disallowed, but Bitcoin to hard cash?
How does the government even know about it?

I don't mean to start a debate here, but I really doubt there is a violation of AML here. Let alone someone being arrested.

And if you think Bitcoin to Cash and vice versa conversions don't take place, you are highly mistaken.

The person, who will deliver cash to your office against Bitcoin will most likely come under AML and will soon get arrested. AFAIK Bitcoin should not be transacted against cash.

What's illegal? Converting Bitcoin to Cash?  You are highly mistaken

Isn't this illegal?
Converting to hard cash?

Hi,

I am looking for someone to help me with converting Bitcoins to INR cash on regular basis. We are a business based in US, with some outsourcing work done in India.

I need a reliable associate who will convert Bitcoins to INR cash on regular basis. Ready to pay a premium over the market price for such exchange.

You will be responsible delivering cash and getting bitcoins instantly at our office in Delhi/NCR.

PM me if you are interested in this.

Cheers!