https://www.taxtmi.com/caselaws?id=244382 Foreign-parent-employed personnel seconded to a liaison office remain employees of the parent where no employment contract or reimbursement liability exists between the liaison office and those personnel. Parent-company remittances for local salary disbursal therefore do not constitute the liaison office purchasing, acquiring, or borrowing foreign exchange under FERA. A contrary finding is inconsistent where no debt is treated as owing to the parent. Penalties for alleged foreign-exchange contraventions require judicial consideration of the relevant facts and a reasoned basis for quantification; an unexplained or arbitrary penalty is legally 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 Foreign-parent-employed personnel seconded to a liaison office remain employees of the parent where no employment contract or reimbursement liability exists between the liaison office and those personnel. Parent-company remittances for local salary disbursal therefore do not constitute the liaison office purchasing, acquiring, or borrowing foreign exchange under FERA. A contrary finding is inconsistent where no debt is treated as owing to the parent. Penalties for alleged foreign-exchange contraventions require judicial consideration of the relevant facts and a reasoned basis for quantification; an unexplained or arbitrary penalty is legally unsustainable. Case-Laws FEMA Mon, 03 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244382