Treatment - nri director & shareholder with substantial interest renders service to company

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Mr A is a Non Resident Indian Shareholder with substantial interest and is also a Director in ABC Ltd. He renders services for ABC Ltd for an event held outside India. He send the bills to the company in Foreign currency. The following points need clarification:-

  1. Does Mr A need to register for GST or can ABC Ltd pay the GST under RCM and claim Input Credit accordingly
  2. Is there any Transfer pricing requirement as this a related party transaction – and is there any additional requirement for being an NRI
  3. Relevant Disclosures for related party transaction for NRI director & shareholder
  4. FEMA regulations for this transaction
  5. Alternatively, if Mr A send the bills in INR to ABC Ltd and requests for payment in his NRO/NRE Account maintained in India then what would be the treatment for the transaction in relation to the above points


Read more at: https://www.caclubindia.com/forum/create_message.asp?cat_id=

Replies (1)

Can some one clarify these points

Mr A is a Non Resident Indian Shareholder with substantial interest and is also a Director in ABC Ltd. He renders services for ABC Ltd for an event held outside India. He send the bills to the company in Foreign currency. The following points need clarification:- Does Mr A need to register for GST or can ABC Ltd pay the GST under RCM and claim Input Credit accordingly Is there any Transfer pricing requirement as this a related party transaction – and is there any additional requirement for being an NRI Relevant Disclosures for related party transaction for NRI director & shareholder FEMA regulations for this transaction Alternatively, if Mr A send the bills in INR to ABC Ltd and requests for payment in his NRO/NRE Account maintained in India then what would be the treatment for the transaction in relation to the above points

Read more at: https://www.caclubindia.com/forum/treatment-nri-director-amp-shareholder-with-substantial-interest-renders-service-to-company-490317.asp


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