News: Indian cos get more to buy property abroad

(BL 06/12/2006) Mumbai - Indian companies with overseas offices can now remit more funds for acquiring immovable property outside India for business and residential purposes.

For the initial expenses, banks may allow remittance up to 15 per cent of the average annual sales or income or turnover of the company in the last two financial years or up to 25 per cent of its net worth, whichever is higher.

For recurring expenses, banks may allow remittances up to 10 per cent of the average annual sales or income or turnover during the last two financial years, said a notification from RBI.

"At present, these banks are permitted to allow remittance up to 10 per cent and five per cent of the average annual sales or income or turnover during last two accounting years of the Indian entity for initial and recurring expenses respectively, for the purpose of normal business operations of the branch or office or epresentative abroad," said the notification.