Best FEMA Consultant in India

Top FEMA Consultant in India

Best Fema Consultant in Ahmedabad Gujarat and India by Mehul Thakkar and Associates. Residential Status under FEMA 1. It is necessary to verify the residence status of the parties involved in each transaction in order to determine the applicability and implementation of the FEMA regulations. A person's residency status will also determine whether or not a certain FEMA Law provision is applicable to them.

2. For this reason, under FEMA, determining a property's residential status is crucial. The residential status determined by FEMA differs greatly from that determined by the Income Tax Act.

3. "Person resident in India" and "person resident outside India" are the two categories of residential status recognized by FEMA. According to FEMA sections 2(v) and 2(w), respectively, these concepts are defined.

4. Section 2(w) of the FEMA, 1999 defines a "person resident outside India" as an individual who does not reside in India.

 5. Based on the definition above, it may be concluded that the major factor determining a person's residence status under FEMA is whether or not they physically resided in India for at least 182 days in the previous fiscal year. But by adding exclusions based on the "Intention" criteria in the definition itself, the same has been watered down. As a result, the purpose may take precedence over the requirement of a physical stay in the Best Fema Consultant in Ahmedabad Gujarat and India by Mehul Thakkar and Associates.

6. From this, it can be inferred that the desire of the individual departing from or remaining in India would take precedence over the circumstance or need of the 182-day test. Furthermore, merely having the "intention" won't cut it; one must demonstrate his intention with official documentation, such as a business or employment visa, a green card, a citizenship permit, etc.

7. Only if a body corporate is registered or incorporated in India will it be regarded as a "person resident in India" (Registration Test).

8. The location of an office, branch, or agency, as well as the ownership and control test, which can be summed up as follows, are the twin tests that determine whether an office, branch, or agency is residential.

 9. A "person resident in India" will be any office, branch, or agency.

 It is noteworthy to mention that the residential status of a Branch is contingent upon the residential status of the Home Office. In contrast, a branch's FEMA residential status would be determined by the ownership and control test as well as the location test, as previously mentioned.