Fema & income tax
This query is : Resolved
05 August 2011
ABC IS A COMPANY IN INDIAN WANTS TO ESTABLISH SUBSIDIARY IN UAE TO IMPORT CRUDE OIL AT CHEAP RATE
MY QYERRY IS : WILL SUBSIDIARY INCOME TAXABLE IN INDIA IF SUBSIDIARY HAS ITS OWN MANAGEMENT IN UAE TO CONTROL DAY TO DAY OPERATION ?
MY QYERRY IS : WILL SUBSIDIARY INCOME TAXABLE IN INDIA IF SUBSIDIARY HAS ITS OWN MANAGEMENT IN UAE TO CONTROL DAY TO DAY OPERATION ?
05 August 2011
All I have to say on your query is the as far as Income tax as well as FEMA has jurisdiction over the subsidiary.
Under FEMA “ person resident in India” is defined to include an office, branch or agency outside India owned or controlled by a person resident in India. Since the subsidiary is owned by a company in India therefore FEMA has the jurisdiction.
For further clariication please be free to write.
Regards,
CA. Sudha G. Bhushan
sudhag999@gmail.com
Under FEMA “ person resident in India” is defined to include an office, branch or agency outside India owned or controlled by a person resident in India. Since the subsidiary is owned by a company in India therefore FEMA has the jurisdiction.
For further clariication please be free to write.
Regards,
CA. Sudha G. Bhushan
sudhag999@gmail.com
05 August 2011
As regards FEMA is concerned you have got the proper answer from the expert but as regards income tax is concerned if any income is earned by a company the same is to be taxed in that country. If at all any income is as per DTA then the Indian company shall get the rebate on tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
