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Repatriation of profits from a wholly owned subsidiary in USA

Sandeep (Managing Director) (40 Points)

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

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 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)
Replied 13 July 2021

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

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 13 July 2021

No it is not taxable

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 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)
Replied 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?