11 May 2010
I have certain doubts. Pl suggest me what is the correct course of actionn as per Income Tax, Company laws and FEMA Act applicable in India:
1) Can a foreign company aquire the shares of a public limited company registered in India whose shares are not listed with stock excnahge?
2) In case the foreign company takes the entire income with them except cost+10-15% profit for the indian company. Can they do so?
3) Can the foreign company charge certain percentage of profit from the public company in india as commission or technical know-how or else?
11 May 2010
Short Answer to your queries is as following -
1- Yes, the no bar except the commpany has to follow FDI rules of FEMA. 2& 3 - Yes - They have to pass the test of arms length as per section 92 to 92F of the IT Act.
CAclubindia
