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Repatriation of profits from a wholly owned subsidiary in USA

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Sandeep

Managing Director

40 Points Posted on 13 July 2021

Hello,

We have a wholly owned subsidiary in USA and was just wondering the ways through which we can repatriate the profits back to India. Is dividend the only way? Is there any other way? And does the profit repatriated attract any taxes in India? Thanky you

Replies (8)

Quick Summary

This discussion explores methods for repatriating profits from a wholly-owned US subsidiary back to India. While dividends are a common route, the conversation delves into whether other methods exist and, crucially, whether repatriated profits attract Indian taxes. The consensus suggests that while direct repatriation is possible, taxability in India, particularly for directors, is a key consideration, even with a Double Taxation Agreement in place.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 July 2021

Yes repatriated amount should be reported in ITR.

You can repatriated directly through any Non Resident External account

Sandeep

Managing Director

40 Points Posted on 13 July 2021

Yes but do you know if it is taxed in India?

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 July 2021

No it is not taxable

Balamurali Unnithan MS

STUDENT

1631 Points Posted on 14 July 2021

Check your residential status 1st, Ji.
Dividends are taxable in the hands of Directors From F.A 2021.

Sandeep

Managing Director

40 Points Posted on 14 July 2021

Yes, but this is a case of wholly owned subsidiary. My company X in India owns a subsidiary Y in USA. I want to repatriate profits from Y to X. In this scenario will be amount sent back to India will be taxed or not?