Wholly owned subsidiary company

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S. Anand (Querist)
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19 March 2011 Dear Sir,

There is a Company 'X' (Public Unlisted company) in India.

It holds shares 100% in the status of a holding company in a company abroad (subsidiary company), from the last one year.

A total of $8000 was wire transferred against incorporation expenses to a representative company abroad which included the investment amount of $100.

The company 'X' has not filed Form ODI.

Request you to opine on the status of this transaction.

I am told that Form ODI is not required to be filed since there is no transaction and there is no Bank account for the susidiary company - abroad.

Regards

S. Anand

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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20 March 2011 The form ODI was required to be filed when you had remitted $8000. Please check what you had mentioned to your AD while transferring the said amount.

Now the right course of action for you is to file form ODI and when the RBI asks you for compounding then go for the same.

Also kindly check whether APR form (to be filed annually )for investments made abroad has been filed or not.

Recently APR Form has been substituted with a more detailed form which needs to be filed by July 15,2011 and every year till the investment in foreign subsidiary continues.

Anuj
9810106211

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