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Procedure of obtaining Government approval for Foreign Direct Investment (FDI)
Foreign Direct Investment means any investment made by a person resident outside in Indian Companies through equity instruments or in LLPs through capital contribution. When India is in the direction of becoming a developed country, interest of persons resident outside India is increasing substantially in Indian Entities. As the foreign funding is increasing, the regulation by the Central Government is also increasing on FDIs.
By CA. Kapil Mittal
Last update on November 28,2023
All about Legal Entity Identifier (LEI) Number
Inter-country transactions have increased drastically and entities across the countries are dealing with each other. In such a case, every country has its own method of identification of any entity such as India having PAN and CIN. However, when it comes to global transactions, the international regulatory bodies are facing the issue of identification of entities in absence of any unique identification number.
By CA. Kapil Mittal
Last update on November 21,2023
Foreign Companies any open Bank Account without PAN
In a recent amendment, the Income Tax Department has exempted non-resident Individuals and foreign companies from submitting PAN for opening of Bank Account at GIFT International Financial Service Centre. Instead, Foreign companies and non-resident Individuals are required to furnish Form 60.
By CA. Kapil Mittal
Last update on November 7,2023
Form 10F filing by non-resident without obtaining PAN
Form 10F is required to be filed by non-residents for claiming benefit of Double Taxable Avoidance Agreement (DTAA) so that they can get income without deduction of TDS in India. Recently, Non-residents were facing a major dilemma of obtaining PAN for filing of Form 10F on Income Tax portal.
By CA. Kapil Mittal
Last update on October 24,2023
Requirement of obtaining PAN and filing of ITR of Foreign Companies
Income Tax Act provides various situations where a foreign company is mandatorily required to obtain PAN. However, there are various situations where PAN is not required as per Law, however, same is required due to practical compliances such as PAN for filing Form 10F for claiming benefit of Form 10F.
By CA. Kapil Mittal
Last update on October 17,2023
A Guide to External Commercial Borrowings (“ECB”) under FEMA-Part-1
As per Statistics, foreign debt has more than doubled in less than two years, as domestic lenders remained cautious in the aftermath of a liquidity crisis and India's Central Bank relaxed regulations for using offshore borrowings.
By CA. Kapil Mittal
Last update on October 10,2023
How to Claim Foreign Tax Credit in Income tax return
As per Section 90 and 90A of Income Tax Act, A non-resident Indian can avoid taxability liability in India on income generated in India by furnishing a Form 10F and Tax Residency Certificate from another country. But what about if a Resident Indian pays Income Tax in another country and is liable to pay income tax on that income in India as well?
By CA. Kapil Mittal
Last update on September 26,2023
Form 10F and PAN of Non-residents in India
Double Taxation avoidance agreement is entered between two countries to avoid dual taxability of the same income in 2 countries. Section 90 of Income Tax Act, 1961, permits the central government to enter into agreement with any other country to avoid double taxation and maintain mutual economic relations, trade and investments. In accordance with Double Taxation Avoidance Agreement (DTAA), Income is taxed in only one country and the assessee is not required to pay tax in another country.
By CA. Kapil Mittal
Last update on September 19,2023
A Guide to DPX 2 Form
Export of goods and services forms an important part of the economy of every country, whether developing or developed, as exports bring foreign currency to the country. Since, a country is providing its resources to another country, therefore, government makes all the efforts that corresponding foreign currency flows into the country at the earliest. For this purpose, various regulations are provided under Foreign Exchange Management Act (FEMA). As per FEMA, foreign currency with respect to export of goods and services should be brought into the country within 9 months from date of export.
By CA. Kapil Mittal
Last update on September 12,2023
“One-to-one Matching” principle under Merchant Trading Transactions
“Merchant Trading Transactions” are those transactions wherein goods neither enters into India nor Moves out of India. However, shipment moves from one country outside India to another country outside India with an Indian acting as intermediary in such a transaction.
By CA. Kapil Mittal
Last update on September 5,2023