Dear All,
A Private Limited Company is incorporated in India and its shareholders are 3 in number, all of them being Indians. The shareholding pattern is like one of the shareholder is holding 99% of the shares and rest are holding 1 share eachDuring the financial year 2004-05, the major sheholder becomes NRI and wants his dividend to be remmited to his NRE account. Now there are following problems:
1. The investment in the shares of this Company by NRI shareholder was from his local Indian bank and was in INR, so can Company remit his dividend after deducting dividend tax to his NRE account.
2. What needs to be done as to like what all necessary authorities need to be informed and what will be the procedure for status change of the major shreholder.
3. Will this NRI be able to take the benefit of repatriating this dividend, if remmited to his NRE account.
with best regards
Anurag
4.
I think the NRI who became NRI at a later stage cannot enjoy the benefits of NRI status from the existing business until he decalres his status as NRI. OTher ting is any divident that in is INR shud be creditef to NRO account and not into NRI account. NRO a/c will automatically deduct TDS and later he can claim refund upon filing returns. Money earned and generated in India is purely taxable and theres no seperate rule for NRI's running the show in India.
As an NRI i feel this is what applies, but please correct me if am wrong.
Regards
Naveen
CAclubindia
