Chartered Accountants◆Practising since 2016

China to India · Repatriation

Moving profits from India to China

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

Profit can leave India as a dividend (10%), royalty (10%), service fee, interest (10%) or buyback. China taxes foreign dividends with credit for Indian tax under its own rules.

What is specific to Chinese companies

Payments to China draw extra questions from banks and tax officers; keep agreements and evidence of services ready.

Routes compared

RouteIndian taxWhat it needs
Dividend10%Distributable profits; board or shareholder approval
Royalty10%A real licence; arm's-length price
Service feeTechnical fees: 10%.Agreement, evidence of services, benchmark
Interest10%Registered ECB loan
BuybackDomestic rulesCompany-law limits; FEMA pricing

Our services

How SU and Company helps

We plan and document how money moves back to the parent, at the right treaty rate.

  • Dividend, royalty, fee and interest planning
  • Treaty withholding and remittance paperwork
  • Board and FEMA steps for dividends and buybacks
  • Indian figures and certificates for the parent's tax relief

Questions

Which route is cheapest?

It depends on the parent's home-country position and the substance behind each charge; dividends are simplest, fees and royalties need contracts and transfer pricing support.

General information as at 5 November 2026, not advice for a particular case. Indian and Chinese rules change often; confirm the current position before acting. Chinese law points should be confirmed with a Chinese adviser.

Queries

Send the firm a query

Tell us briefly what you need. A member of the team will get back to you.

We use your details only to respond to your query. See our privacy policy.

Call