https://www.taxtmi.com/caselaws?id=457420 Reserve Bank approval conditions required an overseas subsidiary to bear the travel and living expenses of representatives undertaking work for that subsidiary. Payment of those expenses from the appellants' funds was treated as a substantive breach of the approval condition and a contravention of the foreign exchange regime. Remittances made before the subsidiary's incorporation were regarded as integrally connected with its establishment, rather than solely with a liaison office. Transfers for the benefit of the proposed subsidiary without necessary permission breached the applicable approval conditions and constituted unauthorised foreign-exchange transfers. Penalties for both contraventions were upheld, and the appeals were dismissed. en-us Tue, 30 Dec 2008 00:00:00 +0530 Thu, 19 Sep 2024 12:51:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457420 Reserve Bank approval conditions required an overseas subsidiary to bear the travel and living expenses of representatives undertaking work for that subsidiary. Payment of those expenses from the appellants' funds was treated as a substantive breach of the approval condition and a contravention of the foreign exchange regime. Remittances made before the subsidiary's incorporation were regarded as integrally connected with its establishment, rather than solely with a liaison office. Transfers for the benefit of the proposed subsidiary without necessary permission breached the applicable approval conditions and constituted unauthorised foreign-exchange transfers. Penalties for both contraventions were upheld, and the appeals were dismissed. Case-Laws FEMA Tue, 30 Dec 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457420