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Fdi in trading company

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(Querist)
16 November 2011 under automatic route 100% FDI is allowed. Suppose X is indian company where 100% equty is held by Y which is an foreign Company.
i want to know whether X can sell the goods(export) to Y, is there any limitation for exports (% cap)
under guidlines, WT of goods would be permitted among companies of the same group subject to 25% of total turnover of wholesale venture. whether this condition apply to holding company Y in case of export

thanks
CA Ashish Gupta
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Vishal D Shah

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Vishal D Shah (Expert)
19 November 2011 Dear Ashish,
Dont forsee any limitation on export. it can export 100% of its goods to holding company.

However you also need to take care of TP regulations.

Regards,
cavishalshah@gmail.com
09920917939
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Ashish Gupta

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Ashish Gupta (Querist)
19 November 2011 thanks vishal
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