Friday , November 28, 2025 |   18:18:48 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
Shadow of Litigation on GAAR thus far (See 'TII Edit') Ageing population to strain European pension systems: OECD (See Brief) DTAA - Delivery Order Charges are directly connected to transportation of goods; fall within scope of Article 8 of India-Turkey DTAA - such charges not taxable in India, as are collected after transportation at point when goods handed over to consignee: ITAT (See Breaking News) African GDP may double if USD 155 bn pumped into infra sector: OECD (See Brief) INTL - CSR contributions, though not allowable as business expenditure u/s 37(1), qualify for deduction u/s 80G if the prescribed conditions are fulfilled: ITAT (See Breaking News) TP - Ttransaction between assessee and AE is in foreign currency with regard to receivables, then transaction would have to be looked upon by applying commercial principles with regard to international transactions - YES: ITAT (See Breaking News) TP - If CCDs issued are in nature of debt, then interest paid on same should be benchmarked as per applicable transfer pricing provision after applying most appropriate method considering availability of data: ITAT (See Breaking News) Illicit trade in tobacco results in revenue loss of over USD 47 billion: WHO (See Brief) TP - Capital financing between two AE should be benchmarked as loan transaction for noticeably brief period between two related parties where there is minimum risk: ITAT (See Breaking News) TP - Each international transaction must be separately evaluated u/s 92C; acceptance of benchmarking for basic market-research services does not automatically cover infrastructure service fees & reimbursements: 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.