21 March 2012
A resident Indian has acquired 100% interest in a GBC2 Company domiciled and registered in Mauritius. The company has three directors one resident Indian and two mauritius nationals. The company is in process of being converted to GBC1.
The Company is going to receive USD 10,000 as commission in a fund-raising assignment. Is the amount taxable in India. The Company wishes to utilise this USD 10,000 in acquiring a substantial interest in a company in India (which satisfies the FDI guidelines). Will this fact change the taxability of the amount ?
CAclubindia
