Foreign transaction

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This query is : Resolved

Rakesh Agarwal (Querist)

14 May 2012 1) Person in Individual Resident
2) He is earning commission outside India for trade between two foreign entities.
3) Can he create a company 100% owned in the same country of receipt - That helps him in visa and other formalities?
4) Can he continue doing business in that country. without sending all receipts to India?
5) Can he take salary from that company?
6) will he be under Transfer Pricing Under Section 92.
7) DTAA suggestion not required.
8) What FEMA Regulation to be followed?

Mihir Doshi

Mihir Doshi (Expert)

14 May 2012 Dear Author,

To open a company is a wise decision while dealing with out of country.

Answer to all of your query depend upon the place he provides the services and then it depends upon DTAA, residencly rule, Taxation rules, Visa of the concerned country.

Rakesh Agarwal

Rakesh Agarwal (Querist)

14 May 2012 Can a resident open a company in any country with the investment-- he earned in that country, Without bring the money to India?

Amol S Joglekar

Amol S Joglekar (Expert)

15 May 2012 This will depend upon the rules and regulations of that COUNTRY. You need to verify those rules of the country where you want to open the company. Bringing money to India is a business decision and there is no restriction in FEMA. However, you need to check the rules of the SOURCE country.