TMI BlogTransfer of assets of Liaison Office (LO) / Branch Office (BO) / Project Office (PO) of a foreign entity either to its Wholly Owned Subsidiary (WOS) / Joint Venture (JV) / Others in India– Delegation of powers to AD Banks.X X X X Extracts X X X X X X X X Extracts X X X X ..... nks Madam/ Sir, Transfer of assets of Liaison Office (LO) / Branch Office (BO) / Project Office (PO) of a foreign entity either to its Wholly Owned Subsidiary (WOS) / Joint Venture (JV) / Others in India Delegation of powers to AD Banks. Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to the A.P. (DIR Series) Circular No. 88 dated March 01, 2012 accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guidelines stipulated in our AP DIR Circular No.23 24 of December 30, 2009 such as (i) submission of AACs (up to the current financial year) at regular annual intervals with copies endorsed to DGIT (International Taxation) and (ii) obtained PAN from IT Authorities and have got registered with ROC under Companies Act 1956. Similarly, proposals from POs should conform to the guidelines issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould scrutinise and ensure that no revenue expenses such as lease hold improvements incurred by LO/BOs are capitalised and transferred to JV/WOS. AD bank to ensure payment of all applicable taxes while permitting transfer of assets. Transfer of assets to be allowed by AD banks only when the foreign entity intends to close their LO/BO/PO operations in India. Subsequently, the AD banks should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 have been issued vide Notification No.FEMA.295/2014-RB dated February 24, 2014, vide G.S.R.No.372(E) dated May 30, 2014. 4. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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