Monday , January 19, 2026 |   02:52:09 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
TP - Once margins after working capital adjustment fall within arm's length range, separate adjustment on account of interest on overdue receivables is impermissible: ITAT (See Breaking News) TP- Deleted the Transfer Pricing adjustment that had been added back to the book profit calculation under Section 115JB of the Income Tax Act- ITAT (See Breaking News) OECD labour force participation rate remains high in Q3 of 2025 (See Brief) I-T- Income from rig hire charges are to be computed under presumptive taxation provisions of Section 44BB of the Act: ITAT (See Breaking News) TP - Provision of negative lien on receivables & Participating Interest is not equivalent to providing a corporate guarantee; such arrangement is not an international transaction u/s 92B & warrants no benchmarking: ITAT (See Breaking News) DTAA - Capital gain derived from sale of unlisted equity shares of foreign entity pursuant to impermissible arrangement, is not entitled to treaty exemption: SC (See Breaking News) DTAA - Furnishing of services through employees within Contracting State is not enough, and ‘physical presence' is mandated, for rendering any counterpart as PE: HC (See Breaking News) I-T - AO, while deciding application for lower or nil withholding certificate u/s 197, is statutorily obligated to follow decision-making process prescribed under Rule 28AA: HC (See Breaking News) I-T- Non-compliance with sanctioning authority provisions post-April 2021 amendments go to the root of the jurisdiction, rendering the reassessment void : ITAT (See Breaking News) TP - Interest on rupee-denominated CCDs has to be benchmarked with reference to domestic prime lending rate & not LIBOR-based rates: ITAT (See Breaking News) I-T - Payment of roaming charges did not require any deduction of tax at source u/s 194J and, hence, no disallowance could be made u/s 40(a)(ia): ITAT (See Breaking News) INTL - Testing charges paid to foreign entities where not involving any human element, cannot be treated as Fees for Technical Services & no tax is deductible u/s 195: ITAT (See Breaking News) DTAA - Recent shifting of family and new investments abroad will not outweigh ‘Centre Of Vital Interests' in India; DTAA Tie-Breaker Test shall be applied to determine Residency Status: ITAT (See Breaking News) TP- Penalty u/s 271G cannot be levied merely for inadequate or improper benchmarking of transactions & where Revenue does not prove that assessee failed to furnish specific documents as per Sec 92D: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

No RBI permission needed for BO, LO or PO if Govt has approved projects in Defence, Telecom & I&B Sectors
By TII News Service
Mar 28, 2019 , New Delhi

    

CIRCULAR NO

27/Dated: March 28, 2019

To,

All Category-I Authorized Dealer Banks

Establishment of Branch Office (BO)/Liaison Office (LO)/Project Office (PO) or any other place of business in India by foreign entities

Attention of the Authorised Dealer (AD-Category I) banks is invited to the Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any Other Place of Business) Regulations, 2016, notified by the Reserve Bank vide Notification No. FEMA 22(R)/RB-2016 dated March 31, 2016, as amended from time to time and the relevant directions issued thereunder.

2. The extant Regulations regarding requirement of prior approval of the Reserve Bank of India, for opening of a Branch Office (BO)/Liaison Office (LO)/Project Office (PO) or any other place of business in India, where the principal business of the applicant falls in the Defence, Telecom, Private Security and Information and Broadcasting sector, have since been reviewed in consultation with the Government of India and the amendments have been notified by Government vide Notification No. FEMA 22(R)(2)/2019-RB dated January 21, 2019.

3. Accordingly, it is advised that for opening of a BO/LO/PO or any other place of business in India, where the principal business of the applicant falls in the Defence, Telecom, Private Security and Information and Broadcasting sector, no prior approval of the Reserve Bank of India shall be required, if Government approval or license/permission by the concerned Ministry/Regulator has already been granted. Further, in the case of proposal for opening a PO relating to defence sector, no separate reference or approval of Government of India shall be required if the said non-resident applicant has been awarded a contract by/entered into an agreement with the Ministry of Defence or Service Headquarters or Defence Public Sector Undertakings. It is clarified that the term "permission" used in the Notification does not include general permission, if any, available under Foreign Direct Investment in the automatic route, in respect of the above four sectors.

4. All other provisions of the BO/LO/PO policy shall remain unchanged. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

5. The Master Direction No. 10 dated January 1, 2016 is being updated simultaneously to reflect the changes.

6. The directions contained in this circular have been issued under Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

[RBI/2018-19/154]

(R K Moolchandani)
Chief General Manager

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.