CAN NRI BECOME PARTNER ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 1. CAN NRI BECOME PARTNER?, IF YES CAN HE TAKE BACE PROFIT EARNED FROM THIS PARTNERSHIP FIRM.
2. CAN NRI DEPOSIT MONEY INTO PARTNERSHIP BUSINESS AS UNSECURED DEPOSIT? IF YES CAN HE TAKE BACK INTEREST EARNED ON THIS DEPOSIT AFTER DEDUCTING TDS?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

12 January 2011 NRI can do business in india. He has to pay tax in india.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
Follow

23 August 2011 1. CAN NRI BECOME PARTNER?, IF YES CAN HE TAKE BACE PROFIT EARNED FROM THIS PARTNERSHIP FIRM.

Yes NRI can become Partner subject to certain conditions under FEMA

2. CAN NRI DEPOSIT MONEY INTO PARTNERSHIP BUSINESS AS UNSECURED DEPOSIT? IF YES CAN HE TAKE BACK INTEREST EARNED ON THIS DEPOSIT AFTER DEDUCTING TDS?

Yes money can be brought in but subject to quite a few conditions under FEMA.

1.The maturity period of deposit shall not exceed 3 years.
2.Interest payable on deposits shall not exceed the ceiling rate prescribed from time to time under the Companies (Acceptance of Deposit) Rules, 1975.
3.The amount of deposit shall be received by debit to NRO account only, provided that the amount of the deposit shall not represent inward remittances or transfer of funds from NRE/FCNR(B) accounts into the NRO account.All the deposit accepting concerns may continue to hold and renew existing deposits held in their books in the name of NRIs on non-repatriation basis. The interest earned on such deposits, subject to Income Tax, will be eligible for repatriation.
4.The amount of deposits so collected shall not be utilized by the firm for
(a) Re-lending (not applicable to a NBFC) or
(b) for undertaking agricultural/plantation activities or
(c) real estate business or
(d) for investing in any other concern, firm or a company engaged in or proposing to engage in :-
Agricultural/ plantation activities or
Real estate business.

Anuj
+91-9810106211
femaquery@gmail.com

Message likes : 3 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now