Sundaresan (Sr. Manager- Finance) (37 Points)
29 April 2011
Dear Friends,
Is royalty payment made by Indian company to its foreign holding company an allowable expense in the hands of the indian company? 
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 03 May 2011
Yes the same is allowable expenditure.Previously there were limits for royalty under FEMA but the same have been removed now. However you can have TP issues on the rate of Rayalty.
Anuj
0-9810106211
CAclubindia
