Dear Members,
There is one company, wholly owned subsidiary (WOS) of foreign company. There are two directors, both are foreigners. Their salary is paid by foreign company and in turn it creates a debit note on its subsidiary in india.
Now the question is this, there are only two ways to receive forex, one is FDI and other is ECB. So, it is nor FDI neither an ECB as it is the expenses borne by foreign co. on behalf of indian co. and the amount is also not so high.
What is to be done in that case? How to repay the parent company?
CAclubindia
