Two entities. Two countries.
One accounting team.

When an Indian resident company (or individual) invests in a foreign entity, FEMA requires: (1) Form FC (ODI Form) filed with the AD bank within 30 days of the investment; (2) Annual Performance Report (APR) filed by 31 December each year thereafter; (3) FLA return filed by 15 July each year. For outward remittances to the US entity above certain thresholds, Form 15CA and Form 15CB (from a CA) are required before the bank processes the transfer.

Transfer pricing rules apply when two related entities (like an Indian subsidiary and its US parent) transact with each other. The price charged must be comparable to what unrelated parties would charge — the "arm's length" price. India requires Form 3CEB — a transfer pricing report certified by a CA — for entities with international transactions above INR 1 crore. Incorrect pricing (e.g. charging the US parent too little for services, reducing Indian taxable income) is an Indian income tax audit trigger. Khetanca prepares Form 3CEB and advises on arm's length pricing for intercompany service agreements.

We handle both. We manage the Indian entity under Indian accounting standards — GST, TDS, income tax, FEMA filings, ROC compliance, and monthly bookkeeping in Zoho Books. We manage the US entity under GAAP in QuickBooks or Zoho Books. For the US tax return, we work with a US-based CPA — we prepare the books and workpapers, the CPA files. This model gives you one point of contact for all financial questions across both entities.

The intercompany service invoice (India subsidiary billing the US parent for tech or services) is raised in USD at the agreed arm's length rate. In the Indian books, it is recorded as export of services revenue — zero rated for GST. The USD received is converted at the day's rate, with FX gain/loss posted. In the US books, it is recorded as a professional services expense. Both sides are reconciled monthly to ensure the intercompany balance eliminates cleanly in the consolidated accounts.