Applications for remittance of profits by the branches of the foreign companies should be accompanied by the following documents:

(a) Certified true copy of audited Balance Sheet and Profit and Loss Account statement for the year to which the profit relates.

(b) Certificate from the auditors covering the following:


(1) manner of arriving at the remittable amount;

(2) confirmation that the entire income of the branch office included in the accounts for the year had accrued from sources in India (In case any part of the income had accrued form sources outside India, the auditors certificate should clearly indicate that this amount was repatriated to India immediately on realisation);

(3) confirmation that the requirements of the Companies Act, 1956 have been complied with.


(c) Certificate, citing RBIs approval number and date, from the auditors to the effect that the branch office has carried on business strictly in terms of the approval under Section 29(1)(a) granted by the Reserve Bank of India.

(d) Certificate from the auditors that sufficient funds have been set aside to meet all Indian tax liabilities or that these liabilities have already been met.

(e) Declaration from the applicant that the profit sought to be remitted is purely the profit earned in the normal course of business and does not include profit from any other source.

Authorised Dealers may scrutinize the above documents particularly with reference to -

(a) source of income which should be out of activities approved by RBI and

(b) calculations of the amount sought to be remitted with reference to the Profit and Loss account and the provision of tax.

If found in order, authorised dealers may allow the remittance.