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NRI Status under FEMA

CA. Rashi Goyal (Chartered Accountant) (512 Points)

30 June 2011

Mr. A has got a job on US company. He went to US on 01.05.11 and stays there for 5 days, during this period he completed all his job formalities. He is required to perfom his during from India. For further duties, he came back to India on 06.05.11 and thereafter he goes to US for one or two days to attend the meeting there. in the mean time he also arranged for working visa to enter US but most of the time he is in India.

Can anybody help me regarding his residential status as per FEMA. Is he NRI as per FEMA.

Thanks,

Rashi Goyal

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3 Replies

shaishav soni (CA final) (348 Points)
Replied 30 June 2011

Madam ,i properly did not understand whether Mr.A got job in USA or in USA based co in india.As much i know, a person deemed to be resident in india-where a person being resident in india for 182 days or more during the preceding year.so he shall be resident in india.Further U can seek for other replies for this querry,& if i am wrong please correct me.

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CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 01 July 2011

He got job in USA based company and the company does not have any office in India, the comany wants Mr. A to work from India. Mr. A is required to visit the US for around one week in a month. He left India on 01.05.11 and remain only for five days there. If I look at the definition of Non resident under FEMA it says that the condition of 182 is not applicable on any person who has gone out of India or stays outside India for or on taking up employment outside India.

In this particular case if I analyse from the definition, Mr.A has gone out of India for employment on 01.05.11 although he did not continue to stay there for long time. If I see according to the definition Mr. A became NRI on 01.05.11.

Please correct if I am wrong in interpreting the definition.