Any examination of cross-border transactions is incomplete without considering the provisions of the Indian Exchange Control Regulations (Foreign Exchange Management Act (or FEMA).
A seemingly tax efficient structure could fail for want of permissibility under FEMA. Besides, unawareness of FEMA requirements could entail huge penalties.
Provisions of FEMA find applicability in a wide array of situations and transactions – inbound investment, outbound investments, equity and debt capital infusion and remittance, imports and exports of goods or services, remittances by individuals and so on.
Our cross-border tax solutions are worked out after careful consideration of the potential applicability of FEMA provisions and implications of such solutions under FEMA.
We also assist corporates and individuals in various advisory and compliance matters relating to FEMA.