https://www.taxtmi.com/circulars?id=52640 Where an Indian company converts a foreign currency liability into equity, the rupee equivalent shall be calculated by applying the exchange rate prevailing on the date of the agreement; the borrower may, by mutual agreement with the non resident, issue shares for a lower rupee amount, and the fair value of the equity is to be determined with reference to the date of conversion. The same principle applies, mutatis mutandis, to conversion of lump sum fees, royalties and similar payables into equity or securities. en-us Thu, 16 Jan 2014 00:00:00 +0530 Thu, 16 Jan 2014 17:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=52640 Where an Indian company converts a foreign currency liability into equity, the rupee equivalent shall be calculated by applying the exchange rate prevailing on the date of the agreement; the borrower may, by mutual agreement with the non resident, issue shares for a lower rupee amount, and the fair value of the equity is to be determined with reference to the date of conversion. The same principle applies, mutatis mutandis, to conversion of lump sum fees, royalties and similar payables into equity or securities. Circulars FEMA Thu, 16 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/circulars?id=52640