FEMA and International Taxation
- Foreign Contribution (Regulation) Act, 2010
- Accounts & Audit
- All FCRA services online
- Applicability
- Change of designated bank account, name, address, aim, objects or key members of the association
- Declaration of receipts of foreign contribution
- Foreign Contribution
- Inspection & Seizure
- Introduction
- Penalty
- Registration of the Association
- Restriction on Administrative Expenses
- Restrictions on acceptance of foreign hospitality
- Restrictions on Accepting FC
- Speculative Activity
- Total Ban on acceptance of Foreign Contribution & Hospitality
- Transfer of FC to other Registered or Unregistered Persons
- Foreign Exchange Management Act, 1999
- Acquisition and transfer of Immovable property in India
- Acquisition and Transfer of Immovable Property outside India
- Bank Accounts in India
- Borrowings from Non-residents
- Branch/Liaison/Project Office in INDIA
- Branch/Liaison/Project Office outside India
- Capital & Current Account Transactions
- Compounding & Contravention under FEMA
- Cross Border Merger Regulations
- Introduction
- Investment in India
- Miscellaneous
- Overseas Direct Investments
- Residential Status under FEMA
- Trade Transactions – Import & Export
- International Taxation
Residential Status under FEMA
Resident: If an individual stays in India for more than 182 days during the preceding financial year, he will be treated as a person resident in India. There are a few exceptions as under:
- If a person goes/stays outside Indiafor (a) taking up employment, or (b) carrying on business or vocation, or (c) for any other purpose for an uncertain period; he will be treated as a person resident outside India (non-resident). (It has been clarified that students going abroad for further studies will be regarded as non-residents.)
- If a person who is residing abroad comes to/stays in India only for (a) taking up employment, or (b) carrying on business or vocation, or (c) for any other purpose for an uncertain period; he will be treated as a person resident in India. However, there are differing views in such a case as to whether the condition of stay of 182 days in India during the previous year will continue to apply.
The term financial year means a twelve-month period beginning from April 1 and ending on March 31 next year.
Following persons (other than individuals) will be treated as persons resident in India:
- Person or body corporate which is registered or incorporated in India.
- An office, branch or agency in India, even if it is owned or controlled by a person resident outside India.
- An office, branch or agency outside India, if it is owned or controlled by a person resident in India.
The definition is however inadequate to define residential status of a firm, an HUF, a trust or any entity which does not have to be registered.
Conversely, a Non-Resident means a person who is not a resident in India.