Loan by foreign subsidary to its indian holding company
This query is : Resolved
nitin chhabra
(Querist)
18 February 2013
DEAR ALL,
CAN A FOREIGN SUBSIDIARY GIVE LOAN TO ITS INDIAN HOLDING COMPANY? PLEASE GIVE ME THE LINK FOR THE SAME.
THANKS & REGARDS
NITIN CHHABRA
CAN A FOREIGN SUBSIDIARY GIVE LOAN TO ITS INDIAN HOLDING COMPANY? PLEASE GIVE ME THE LINK FOR THE SAME.
THANKS & REGARDS
NITIN CHHABRA
Nikhil Kaushik
(Expert)
18 February 2013
i am not sure if the same serves any purpose. Plus, this may trigger deemed dividend! However, you may refer to the "Farida Holdings (P.) Ltd. v Deputy Commissioner of Income-tax [2012] 21 taxmann.com 462 (Chennai – Trib.)" case to avoid deemed dividend.
As far as FEMA issues, may be some FEMA expert should comment on it.
As far as FEMA issues, may be some FEMA expert should comment on it.
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CA. Anuj Gupta
(Expert)
20 February 2013
Foreign Company can give loan to Indian Company but subject to ECB guidelines provided by RBI in this behalf.
I also feel that Deemed Dividend Clause shall not come into picture.
Anuj
femaquery@gmail.com
I also feel that Deemed Dividend Clause shall not come into picture.
Anuj
femaquery@gmail.com
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