09 September 2012
can a non-resident lease out his machinery to an Indian resident, while that machinery is purchased from India. it is not second hand machinery. fresh one machinery. is there any possibility to arise FDI relation regarding tax or lease payment or rent to non-resident. how the rent or lease payment will be treated in accounts of nonresident and resident.
is that possible for both the parties(resident and non resident) to deal without any payment regarding rent or lease rent.
10 September 2012
a. Non-resident can lease out his machinery to Indian. b. If machinery was purchased by non-resident by transfer of funds from abroad to India then FDI etc. may come into. c. Rent Lease Payment shall be paid to non-resident by banking channels. And to do so form 15CA and 15CB is to follow - which requires CA Certification every time. d. In the Books of Resident Rent will be treated as expenses. TDS factor will apply. e. How any why you are interested about the account books of non-resident. Seems you have not expanded your question clearly and hiding some facts. But clearly if it is a expenses of Resident then it is the income of Non-Resident.
f. Will it look justified if the machinery is put to use without any RENT portion. Again it seems you are hiding the facts.
CAclubindia
