Fixed assets
This query is : Resolved
30 July 2013
sir,
if a foreign holding co situated in china transfer some fixed assets after purchase from korea country to its 100% wholly owned subsidiary co in india at on credit which will be payable after 10years or may be long or may be on free of cost,then my question is whether the amount of fixed assets be consider as capital commitment come under the perview of firc/fcgpr of rbi for which subsidiary co have to file fcgpr, or it can take as normally creditor for fixed assets
if a foreign holding co situated in china transfer some fixed assets after purchase from korea country to its 100% wholly owned subsidiary co in india at on credit which will be payable after 10years or may be long or may be on free of cost,then my question is whether the amount of fixed assets be consider as capital commitment come under the perview of firc/fcgpr of rbi for which subsidiary co have to file fcgpr, or it can take as normally creditor for fixed assets
02 August 2013
Yes it has to be as the capital is introduced without any consideration and the entire assets have been sent through the foreign remittance. So it is needed to undergo the formalities. You have to look into from the angle of imports. In this case the Indian entity is importing the assets and also what will happen when the same is take back on winding or closing of the business. If it is disposed then the country's foreign currency will be paid by way of transfer or sales in India. So it is important to undergo all the formalities for this transaction.
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