Foreign Investment in a domestic company on a strategic basis is subject to Foreign Direct Investment (FDI) policy in India. The Government of India through the Department of Industrial Policy and Promotion (DIPP) formulates a consolidated FDI policy on a yearly basis which is a defined framework of FDI.
Foreign investors/Non-resident investors can directly invest in India either on their own or through joint ventures in virtually all sectors in India except in a miniscule list of activities, where foreign investment is prohibited.
Divakar Hari & Associates assists foreign investors/Non- resident investors in obtaining the requisite approvals under the automatic route or Government approval route by following the standard operating procedures within the framework of Foreign Exchange Regulation Act. (FEMA).
With India opening up its economy and increased globalization, many foreign companies choose India as their destination to expand their business operations, they prefer to deploy their foreign employee often referred to Expatriates, in India for a short period. The scope of taxability of income of such expatriate primarily depends on his residential status in India or
his residential status as per DTAA, which is determined on the basis of the physical presence in India. Similarly Indian citizens who take up employment in other countries, referred to as non- residents also need to determine their correct residential status in order to discharge their tax obligations.
Our firm aims to provide assistance to expatriates/non-residents to discharge their tax obligation in India by guiding them through the process of determining the residential status and comply with the due process of law in filing their tax returns.
FEMA, FDI & TAXATION OF NON–RESIDENTS & EXPATRIATES
