Exit Valuation: Secondary Sale, Buyback & IPO in India 📌 Quick Answer: What valuation do I need for an exit — secondary sale, buyback, or IPO? Exit valuation in India is governed by multiple overlapping regulations depending on the exit route. Secondary sales between residents require a Chartered Accountant certificate under Rule 11UA (DCF or […]
Category Archives: RBI COMPLAINCE
RBI COMPLAINCE
Brand Valuation in India: Relief from Royalty & Excess Earnings Methodology 📌 Quick Answer: How is a brand valued in India? Brand valuation in India primarily uses two income-approach methods: the Relief from Royalty (RfR) method, which values the brand as the present value of hypothetical royalty savings, and the Multi-Period Excess Earnings Method (MPEEM), […]
Fair Value Under Ind AS 113: Hierarchy, Valuation Techniques & Disclosure Requirements 📌 Quick Answer: What is fair value under Ind AS 113? Ind AS 113 (Fair Value Measurement) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market […]
FC-GPR & FC-TRS: Complete Guide to FDI Reporting Under FEMA 📌 Quick Answer: What are FC-GPR and FC-TRS forms? FC-GPR (Foreign Currency — Gross Provisional Return) is the mandatory RBI reporting form filed by an Indian company when it issues shares or other eligible securities to a person resident outside India. FC-TRS (Foreign Currency — […]
ODI Rules 2022: Step-Down Subsidiary, Round-Tripping & Complete Compliance Framework 📌 Quick Answer: What are the ODI Rules 2022 under FEMA? The Foreign Exchange Management (Overseas Investment) Rules, 2022, effective 22 August 2022, replaced the earlier ODI Regulations 2004 and consolidated the entire framework for overseas investments by Indian residents. These rules govern Overseas Direct […]
NRI Investment in India: FEMA Routes, Tax Obligations & Repatriation Framework 📌 Quick Answer: How can NRIs invest in India and what are the FEMA and tax rules? Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can invest in India through multiple channels: Foreign Direct Investment under the Automatic or Government Route governed by […]
Quick Answer: FEMA contraventions attract penalties up to three times the sum involved under Section 13(1). Compounding under Section 15 allows voluntary settlement by paying a fee to RBI (up to Rs 5 crore contravention) or ED (above Rs 5 crore). Not all contraventions are compoundable — Section 3(a) hawala violations are excluded. At our […]
Transfer Pricing for Intangibles & Marketing: AMP Expenditure Disputes 📌 Quick Answer: Transfer pricing for intangibles — including marketing intangibles, brand development, and AMP (advertising, marketing, and promotion) expenditure — is one of the most contested areas in Indian transfer pricing. The Revenue authorities have historically argued that Indian subsidiaries of multinational enterprises incur excessive […]
Thin Capitalisation Rules: Section 94B Interest Limitation 📌 Quick Answer: Section 94B of the Income Tax Act limits the deduction of interest paid or payable to an associated enterprise (AE) — whether directly or through a non-AE lender backed by an AE guarantee — to 30% of EBITDA (earnings before interest, taxes, depreciation, and amortisation) […]
Management Fees & Intra-Group Services: TP Benchmarking & Low Value 📌 Quick Answer: Management fees and intra-group service charges paid to associated enterprises must satisfy the benefit test (the service must confer an identifiable benefit), the need test (the recipient would have paid an independent party or performed the activity in-house), and be benchmarked at […]