International Taxation

·      Expense to be incurred by Pvt Ltd Co as follows: 

·      Marketing and Branding Expenses in Overseas markets

·      Deputation of manager from India to overseas location

·      All travelling, lodging & boarding Expenses of manager to be incurred by company directly or as reimbursement of expenses incurred by manager

·      Salary to be paid in INR in India

 

 

Any RBI/FEMA/FOREX limitations

Any withholding taxes

Expenses to be treated as business expenses?

Tax implications on Manager based for duration of stay, reimbursement of all expenses, salary in India

Necessary to incorporate Branch or Subsidiary outside India or Indian company can directly undertake business expenses

Any other points to be considered

Appx expense Rs.1 cr p.a

Replies (1)

Based on Indian regulatory framework, here are the answers: 1. _Traveling, lodging & boarding expenses_: Company can incur expenses directly or reimburse manager's expenses. However, reimbursement should be within reasonable limits and in accordance with company's policies. 1. _Salary payment in INR_: Yes, salary can be paid in INR in India. 1. _RBI/FEMA/FOREX limitations_: Some limitations apply: - Per diem allowance for foreign travel: ₹1,000 - ₹2,000 per day (depending on location) - Reimbursement of expenses: Should be reasonable and supported by receipts - Salary payment in INR: No FEMA/FOREX limitations, but TDS and income tax apply Please consult a chartered accountant or legal expert for detailed guidance. Note: RBI (Reserve Bank of India), FEMA (Foreign Exchange Management Act), and FOREX (Foreign Exchange) regulations can change, so it's essential to stay updated and consult experts for specific cases.

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