Remittance restrictions: head-office expenses payable only from current surplus after Indian tax, with assessment proof required for additional payments. Reserve Bank instruction restricts remittances of head-office expenses to payments made only from the current surplus after deduction of Indian income tax; post-assessment additional remittances are permitted only upon submission of the income-tax assessment order showing head-office expenses allowed and total tax payable. Income-tax officers must scrutinise such claims and, for oil and tea companies, consider Ministry or Reserve Bank approvals certifying reasonable amounts when determining admissibility.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Remittance restrictions: head-office expenses payable only from current surplus after Indian tax, with assessment proof required for additional payments.
Reserve Bank instruction restricts remittances of head-office expenses to payments made only from the current surplus after deduction of Indian income tax; post-assessment additional remittances are permitted only upon submission of the income-tax assessment order showing head-office expenses allowed and total tax payable. Income-tax officers must scrutinise such claims and, for oil and tea companies, consider Ministry or Reserve Bank approvals certifying reasonable amounts when determining admissibility.
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