https://www.taxtmi.com/caselaws?id=244382 Remittance by a foreign parent for salaries of employees seconded to a liaison office was analysed under FERA to determine whether the liaison office had purchased or otherwise acquired foreign exchange. The note states that, where the seconded personnel remained employees of the foreign parent and no privity of contract or reimbursement liability existed in favour of the liaison office, the salary remittance did not amount to acquisition or borrowing of foreign exchange. It also explains that penalty quantification under Section 50 required judicial application of mind and reasons; an unexplained, arbitrary penalty figure was treated as unsustainable. en-us Mon, 03 Feb 2014 00:00:00 +0530 Tue, 25 Feb 2014 06:23:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244382 Remittance by a foreign parent for salaries of employees seconded to a liaison office was analysed under FERA to determine whether the liaison office had purchased or otherwise acquired foreign exchange. The note states that, where the seconded personnel remained employees of the foreign parent and no privity of contract or reimbursement liability existed in favour of the liaison office, the salary remittance did not amount to acquisition or borrowing of foreign exchange. It also explains that penalty quantification under Section 50 required judicial application of mind and reasons; an unexplained, arbitrary penalty figure was treated as unsustainable. Case-Laws FEMA Mon, 03 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244382