Cross Border Transaction
Cross Border Transaction services means services related to transaction which involve two or more countries. In India there are two Acts which primarily seems to show concern when a person(Indian Resident or foreign Resident) undertakes cross border transactions viz.
1) Foreign Exchange Management Act, 1999 and
2) Income Tax Act, 1961
Therefore it is imperative that a person needs to deal with both the above mentioned Acts to enter into a cross Border Transaction.
Advance Ruling representational Services
Term ‘advance ruling’ means (a) the determination of a question of law or fact in relation to a transaction which has been undertaken or is proposed to be undertaken by a non-resident applicant and also includes the determination of the tax liability of a non-resident arising out of such transaction with a resident applicant; (b) the determination or a decision on a question of law or fact relating to the computation of total income which is pending before any Income-tax authority or the Appellate Tribunal. We at S.K Patodia & Associates deeply analyse client’s case to be placed before Advance ruling authority and prepare the necessary documents required to be filed with relevant authority. Our services also include representational services that involve representing client before ruling authority and post facto analysis of the dictated decision by the ruling authority.
Branch Office Set up of Foreign Company
Permission to set up a branch office is granted by the Reserve Bank of India. A Branch office of a foreign company upon approval from the RBI must be compulsorily registered under the (Indian) Companies Act, 1956.
Upon registration under the Companies Act, 1956 the branch office can carry on its business activities in the same way as a domestic company. Unlike a liaison office a branch office can generate revenue from the sales in the local market and repatriate the profits to the foreign parent company.
A branch office so approved and registered can carry on the following activities –
- Export/Import of goods
- Rendering professional or consultancy services
- Carrying out research work, in which the parent company is engaged.
- Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
- Representing the parent company in India and acting as buying selling agents in India.
- Rendering services in Information Technology and development of software in India.
- We at S.K Patodia & Associates assist our clients in setting up of branch offices in India by ensuring that all compliances are duely met with and client has not to bother about set up phase.
Business Set up services
We at S.K Patodia & associates assists non residents in starting, growing, expanding, diversifying and in case required, closing businesses in India. We provide consultancy services to non-residents and young entrepreneurs to plan and execute their business set-up process smoothly. We provide solutions to all queries on setting-up business in India in an innovative manner through customized tools, for easy understanding. Our consultancy services has expanded its wings to other services as well like preparation of project reports, feasibility report, market survey, project planning & many more.
FEMA and RBI compliances
The transaction involving foreign exchange is regulated by Foreign Exchange management Act, 1999 in India. The main thrust from liberalization of economy has been on promotion of foreign exchange rather than control of foreign exchange. All transaction involving foreign exchange is regulated by FEMA and the provisions of FEMA have to comply with wherever applicable. The preamble of the act says that it is an Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
We Provide FEMA & RBI related following services
- Compliance of the procedure including chartered Accountants Certification for repatriation of income/assets from India.
- Making applications to Reserve Bank of India for purchase/sale of shares, debentures & securities and directly to and from Residents in India and outside India.
- Allotment of Shares to non residents.
- Transfer of shares from Indian resident to non-residents.
- Setting up Joint Venture (JV).
- Setting up Partnership / Partnership by NRI’S or persons of Indian origin.
- Other Advisory Services on FEMA / RBI etc.
- Issue of Statutory Certificates under FEMA & RBI regulation.
Foreign Company Incorporation
In India, incorporation of a company involving foreign investment is primarily governed by two laws i.e. Companies Act, 1956 and Foreign Exchange Management Act, 1999 (FEMA). Companies Act is principally concerned with compliance with requirements and guidelines prescribed by registrar of companies whereas FEMA mandates compliances with guidelines prescribed by Reserve Bank of India in relation to Foreign Direct Investment in India.It is imperative from above that our scope of service emanate in form of consultancy services for ensuring compliance with both the above laws i.e. Companies Act, 1956 and FEMA, 1999 and liaisoning with respective authorities.we as a consulting agency assist our client in all matters relating to companies Act and FEMA (RBI) compliances
International Taxation is the study or determination of tax on a person or business, subject to the tax laws of different countries or the international aspects of an individual country’s tax laws. Governments usually limit the scope of their income taxation in some manner territorially or provide for offsets to taxation relating to extraterritorial income.
We at S.K Patodia & Associates have a well qualified and experience team of professionals who can technically handle your International Tax transactions to meet all compliances related to respective laws. Our team’s strength lies in tax structuring of transactions in a way that results in minimum tax outflows arising from Double taxation Avoidance Treaties between India and other countries . In Nut Shell we look after all the International Transactions and see to it that all your international transactions are well monitored and analysed in realtion to Tax matters.
Liaison office Set up
A Liaison Office is in the nature of a representative office set up primarily to explore and understand the business and investment climate. A Liaison Office is not permitted to undertake any commercial / trading / industrial activity, directly or indirectly, and is required to maintain it out of inward remittances received from parent company through normal banking channels. The Liaison Office is permitted to undertake following activities only -Representing the parent Company in India, Promoting export/import from/ to India, Promoting technical/financial collaborations between the parent companies and companies in India, Promoting export/import from/ to India, Acting as a communication channel between the parent company and Indian Companies. Any foreign company intending to open a Liaison Office in India is required to obtain Prior approval from the RBI, the apex bank in India. Approval is usually granted for one to three years and can be renewed on expiry thereof.
The Provisions governing the regulation of Transfer Pricing in India is contained in Indian Income Tax Act, 1961. Where in an international transaction, two or more associated enterprises enter into a mutual agreement or arrangement for any service or facility provided or to be provided to any one or more of such enterprises, the cost or expense allocated or apportioned to, or, as the case may be, contributed by, any such enterprise, in relation to such service\facility shall be determined having regard to the Transfer Pricing Regulations contained in the Act.As per the T.P regulations every person who has entered into an international transaction is required to maintain prescribed documents and information in respect thereof. Our qualified and well experienced professionals supports clients following the specific regulations as per Indian Income-tax law and regulations, by appropriate analysis to estimate inter-company transfer pricing policies and to maintain the pricing as within the Arm’s Length Price.
We advise our clients in such a way by predicting the tax risk and to reduce the tax burden from transfer prices by avoiding legally and thereby, enhancing their global resources and profit margins. SKP’S transfer pricing experts exploit market-based transfer pricing techniques (market risk, business risk, functional analysis, Assets Analysis, value-chain, supply chain management and business structure analysis, industry analysis, analysis on data bases etc.), benchmarking study, and exact assessment methodologies to design inter-company transfer pricing policies adopted in sound business approach and well-established similar industry’s principles.