foreign investment


This query is : Resolved 

03 August 2010 one of our client a private limited company , want to allot shares to NRI & NR relative of directors at book value, WHAT are the tax implications and fema implications that we have to take care in such a situation?

04 August 2010 You have to clarify which sector the Indian Company is working and also check whether the same is covered under the automatic route or the approval route. Also the RBI has recently provided the Discounted Cash Flow Method for the purpose of valuation of shares.So you need to prepare the share value as per the discounted cash flow method . Regarding Tax implications the same shall arise only when you pay some money to the NRI or when the shares are transferred by the NRI


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