Fema & income tax

This query is : Resolved

HARISH (Querist)
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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 ?

Sudhag

Sudhag (Expert)
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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

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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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.

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