AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
NEW DELHI, Oct. 28. IN what could perhaps be a test case, the Finance Ministry is setto examine tax implications of "round tripping" of foreign directinvestment (FDI). The move follows the deferment of a proposal recently by the Foreign Investment Promotion Board (FIPB) which has implications on overseas direct investment (ODI), said a senior official.
"Round tripping" of FDI is where domestic funds come back into India as FDI money without any incremental flow of funds into the country.
The proposal deferred by the FIPB pertains to re-investment of monies by a UK-based company - set up under ODI policy - into its Indian company under the FDI policy. …