Clarification on Investment by foreign co

[JOHN SHANNEL]

eg: X Pvt. Ltd. is a indian company. Majority paid up capital held by a foreign company. the foreign company wants to transfer a machinery to its subsidiary X Ltd. Is there any restriction by RBI/Customs?? Regards John Shannel

[DR.MARIAPPAN GOVINDARAJAN]

Whether you got clarification in this case? If not inform me with the latest position.

AI Summary

Foreign-to-subsidiary machinery transfer raises FEMA and customs compliance questions and potential RBI approvals for inward transfers. Whether a foreign parent company may transfer machinery to its majority owned Indian subsidiary without breaching foreign exchange or customs controls is posed as a compliance query under FEMA, highlighting potential intersections with RBI regulations and customs law and asking whether restrictions, approvals or reporting obligations apply for such transfers.