> Stored procedure in database A uses DB links to database B. In which DB are
> the SQLs in the SP parsed?

The following test uses database A (10g and then 9.2), and database B (9.0).

Table YONGTAB is created in both A and B databases:
create table yongtab (a number);

The link and stored procedure are created in A only:
create database link yonglnk connect to usr identified by paswd using 'databaseb';
create or replace procedure yongproc as begin
insert into yongtab values (1);
insert into yongtab@yonglnk values (2);
end;
/

where yonglnk is the link from A to B.

Before executing yongproc in A, running this query
select sql_text from v$sql where lower(sql_text) like '%yong%' and lower(sql_text) not like '%v$sql%'
in A shows:
create table yongtab (a number)
when A is 10g. It shows no rows if A is 9i.

Running the query in B shows no rows.

After executing this procedure in A
exec yongproc
running the above query against v$sql in A shows:
BEGIN yongproc; END;
INSERT INTO YONGTAB VALUES (1)
create table yongtab (a number)
INSERT INTO YONGTAB@YONGLNK VALUES (2)
when A is 10g. When A is 9i, it's missing the "create table" line and the INSERT lines are shown all lower-case except the first word INSERT.

Running the query in B shows:
INSERT  INTO "YONGTAB" ("A") VALUES (2)
SELECT * FROM "YONGTAB"

Conclusions:
1. The SQLs in the procedure are parsed in both A and B if the SQLs use DB links. In the remote database, the SQL statement is rewritten leaving the @dblink part off.
2. 10g v$sql contains DDL but 9i v$sql does not record some DDLs (create table, drop table).

Make sure to flush shared pool between tests. If the SQL remains in v$sql
after flushing, it may be because your cursor is held in null mode by the
session (not that they're kept; v$db_object_cache.kept says 'NO'). Just do
something trivial like describe sometable, to break the breakable parse lock
(see the bottom part of KeptObjCan'tBeFlushed.txt)
______________
Another test, not quite relevant to the issue here. In B,
create table mytab (a number);
create or replace procedure myproc as begin
insert into mytab values (10);
end;
/
In A (9.2, not 10g),
exec myproc@mylnk
where mylnk is the link pointing to B
Then, v$sql in B shows "INSERT into mytab values (10)"
In A, it has "BEGIN myproc@mylnk; END;"