banner_ad

liaison office

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 March 2009 Dear Friends,

Kndly provide your valuable opinion of the following issue.

1. A foreign company had established a liason office in India.
2. The liason office provides technical consultancy services to the clients of foreign company who are staying at abroad.
3. The liason office do not sell any of thier services/goods in India.
4. All the funds for the maintainance of liabson office are received from foreign company abroad.

Under the above said circumstances, whether can it actually be called as liason office as per the definition provided by RBI?

Does it amount to permanant establishment in India?
Profile Image

Rajesh Kumar

Profile Image

Rajesh Kumar (Expert)
20 March 2009 It is a liason office under FEMA. Permission of RBI is required as without that permission the office cannot operate a bank account in India in Indian currency.
The term permanament estblishment is very wide, and also covered under the term "business connection" in Section 9 of the IT Act.
The transaction should be thoroughally examined to avoid any problem at later stage.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details