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TMI Blogschedule III of the fema provisions related to current account transactionX X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule III of the fema provisions related to current account transaction. This provisions talks on the remittances exceeding 5 % of investment brought in India or USD 100000 whichever is higher , by an entity in india by way of reimbursement of pre incorporation expenses. There is an Indian company X being formed with a 100% holding in Mauritius Y. When payments are made by Y oversea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s parent or related company to third party consultants to carryon feasibility study, or conducting surveys, or drafting legal documents and consulting before the X company is actually incorporated, can these type of expenses also be claimed under these provisions ? As these are before incorporation of the company X . Also when overseas parent. Y paid without deducting TDS on these invoices as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per their provisions - do we pay tds in India if we can claim these under FEMA by company X If yes then from which date do we pay TDS - invoice date or Indian company s formation date X. Is there any clear guidelines on what constitutes these expenses which can be claimed? - Reply By sunil jain - The Reply = Based n facts given in the query, my opinion is as under pre incorporation e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses have not been defined any where. But thses should mean expenses incurred directly relating to incorporation of company. Feasibility study is not for incorporating the company. It is expense incurred by the investor for his purposes of analysing the project. Second the question of permissible remittances and withholding tax are under two different acts. Whether the parent company has made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS is not relevant. You need to see whether in terms of section 195 any liability arises. Thanks CA Sunil Jain 9810140664 - schedule III of the fema provisions related to current account transaction - Query Started By: - Common Issues Dated:- 18-9-2011 FEMA - Foreign Exchange Management - Got 1 Reply - FEMA - Discussion Forum - Knowledge Sharing, reply post by an expert, personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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