Dear Members,
My Client (NRI) has invested Rs.20 Lakhs (Indian Currency) in New Startup and Amount has been repaid by Startup company (Based in Hyderabad) back to my Client amounting to Rs.22.50 Lakhs (Indian Currency)
The Oral Terms were agreed between the My client & Company as under :-
1. Total 10% Stake in Company of which 5% has already been paid by Company and received in Client Bank Account 5% Balance Stake is yet to be received. Now, The situation is my client is demanded for balance 5% Stake based on current valuation of Company as the turnover of the company has been increased.
2. MOU has not been finalized yet between the Company and my Client.
Points for discussion :
1. Applicability of Income Tax in hand of My Client in case of fund received in Indian Currency. and
2. Can we take transfer the fund from Company directly to My Client bank account in Foreign Currency.
Suggestions are welcome from Members.
Thank You
CAclubindia
