Section 7 in The Foreign Exchange Management (Establishment In India Of Branch Or Office Or Other Place Of Business) Regulations, 2000
7. Remittance of profit or surplus .-A person resident outside India permitted by the Reserve Bank under regulation 5, to establish a branch or project office in India may remit outside India the profit of the branch or surplus of the project on its completion, net of applicable Indian taxes, on production of the following documents, and establishing the net profit or surplus, as the case may be, to the satisfaction of the authorised dealer through whom the remittance is effected--
I. For remittance of profit of a branch--(a)certified copy of the audited balance-sheet and profit and loss account for the relevant year;(b)a Chartered Accountant's certificate certifying--(i)the manner of arriving at the remittable profit,(ii)that the entire remittable profit has been earned by undertaking the permitted activities, and(iii)that the profit does not include any profit on revaluation of the assets of the branch.II. For remittance of surplus on completion of the project--(a)certified copy of the final audited project accounts;(b)a Chartered Accountant's certificate showing the manner of arriving at the remittable surplus;(c)income-tax assessment order or either documentary evidence showing payment of income-tax and other applicable taxes, or a Chartered Accountant's certificate stating that sufficient funds have been set aside for meeting all Indian tax liabilities; and(d)auditor's certificate stating that no statutory liabilities in respect of the project are outstanding.[8. Transfer of assets of Liaison Office/Branch Office/Project Office to Joint Venture/Wholly Owned Subsidiary and any other entity in India. - A person resident outside India permitted under Regulation 5 to establish a Branch or Project or Liaison Office may, at the time of closure of said Branch or Project or Liaison Office, as the case may be, apply to the authorized dealer concerned for transfer of its assets to JV/WOS or any other entity in India.]
