Urgent

From FEMA prespective we have to see that whether under FEMA the Indian resident can enter into the partnership with the Non resident. A resident individual can enter into partnership with non resident only subject to the prior approval of RBI. Please refer attached for details https://www.rbi.org.in/scriptts/BS_ViewMasCirculardetails.aspx?id=6532#L16

therefore kindly consider the permission from RBI before such partnership can be entered and before doing any further structuring.

Regards,

CA. Sudha G. Bhushan

sudhag999 @ gmail.com

Thankyou so much sir, but partnership is between only 3 persons , all r indians.  but the service they r providing i.e. online classes through sale from website only is only to the students of US and Canada, money will be recieved in $ and it will be deposited straight into their bank a/c which is in india

Dear Sumeet,

In that case , there is no problem in this transaction from FEMA prespective.

Whole of the income is taxable in India. 

I hope above helps.

Regards,

Sudha

Originally posted by : Sudhag
	Dear Sumeet, In that case , there is no problem in this transaction from FEMA prespective. Whole of the income is taxable in India.  I hope above helps. Regards, Sudha

But its a kind of export type, they will be recieving all money after paying tax in US, dnt u think that DTAA btwn india and US will be relevant

No since they are Indian residents theire 100% income is taxable in India.  But the credit of taxes already paid can be looked in DTAA.

Regards,

Sudha

Thanx a lot, but i stil have a doubt regarding this, they will be recieving all m oney in  $s through normal banking channel,nodoubt, but hw come they are not covered under FEMA, can u plzz clear my dis doubt sir