- There are no restrictions on the percentage of royalty payments for use of technology or trademarks under FEMA. Royalty payments are considered current account transactions.
- There are no restrictions on payment of commissions, except for commissions over USD 25,000 or 5% of inward remittance paid to agents abroad for sale of residential/commercial property in India.
- Payment for employee stock ownership plans (ESOPs) are considered capital account transactions governed by FEMA regulations.
- Under the Liberalized Remittance Scheme, residents can provide loans in foreign currency to non-resident Indian relatives.
- Profits from sale of property or shares by non-resident Indians are considered capital account transactions as the
Objectives & Agenda :
The Regulations under FEMA regulate the Import transactions of Goods, Services and Currencies. In this Webinar we shall understand the Definition of the term 'Import', 'Services' and 'Currencies'. We will also look at various procedures and compliances involved while Importing goods or services or currencies.
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency Accounts that can held by an non-resident in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the various types of Foreign Currency Accounts that can opened by a Non-resident in India and the related conditions.
Objectives & Agenda :
The Regulations under FEMA regulate the Import transactions of Goods, Services and Currencies. In this Webinar we shall understand the Definition of the term 'Import', 'Services' and 'Currencies'. We will also look at various procedures and compliances involved while Importing goods or services or currencies.
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency Accounts that can held by an non-resident in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the various types of Foreign Currency Accounts that can opened by a Non-resident in India and the related conditions.
FEMA Regulations for Incorporation of WOS/JV/ Step-down Subsidiary outside IndiaDVSResearchFoundatio
Key Takeaways:
Acquisition of JV/WOS by Indian parties
Approvals required for investment in JV/WOS by Indian parties
Understanding step-down subsidiary
Setting up step-down subsidiary outside India and reporting procedures involved
Impact due to change in residential status - FEMA perspectiveDVSResearchFoundatio
Key Takeaways:
Various bank accounts
ODI and FDI investments
Property held in India and Outside India
Loan transactions
Demat, Insurance policies and PPF accounts
Objectives & Agenda :
Foreign Exchange Management Act, 1999 has the authority to govern the Capital Account Transactions and Provision of Services between Non-Residents and Realisation and Repatriation of Foreign Exchange. FEMA empowers the RBI to prescribe Regulations in order to govern such transactions. In this Webinar, we shall understand the FEMA regulations governing International Financial Services Centre (IFSC) and Offshore Banking Unit (OBU).
Foreign Currency and Foreign Currency Accounts for Residents under FEMADVSResearchFoundatio
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency that can held by an individual in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the regulation which governs the possession of foreign currency in India and the various types of Foreign Current Accounts that can opened by an Indian resident and the related conditions.
Objectives & Agenda :
The Regulations under FEMA regulate a transaction based on whether the transaction is a 'Capital Account Transaction' or a 'Current Account Transaction'. In this Webinar we shall understand the Definition of the terms 'Capital Account Transactions' and 'Current Account Transactions'. We will also look at various transactions covered and the limits applicable to such transactions.
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
Key Takeaways:
Recent amendment in FDI policy for foreign investment
Ambiguities relating to the amendment
Probable impact of the changes in the policy
Overview of other countries' rule for strategic takeovers
WTO principles and inference
Objectives & Agenda :
To understand the regulations under Foreign Exchange Management Act, 1999, relating to Transfer of Capital Instruments of an Indian Company by or to a Person resident outside India. In this webinar, we shall look at the various circumstances of such transfers and the conditions to be adhered to. We shall also look at the Pricing Guidelines, Mode of Payment and provisions for Opening of Escrow account and Deferred payment of consideration in transfers between Residents and Non-residents.
FEMA Regulations for Incorporation of WOS/JV/ Step-down Subsidiary outside IndiaDVSResearchFoundatio
Key Takeaways:
Acquisition of JV/WOS by Indian parties
Approvals required for investment in JV/WOS by Indian parties
Understanding step-down subsidiary
Setting up step-down subsidiary outside India and reporting procedures involved
Impact due to change in residential status - FEMA perspectiveDVSResearchFoundatio
Key Takeaways:
Various bank accounts
ODI and FDI investments
Property held in India and Outside India
Loan transactions
Demat, Insurance policies and PPF accounts
Objectives & Agenda :
Foreign Exchange Management Act, 1999 has the authority to govern the Capital Account Transactions and Provision of Services between Non-Residents and Realisation and Repatriation of Foreign Exchange. FEMA empowers the RBI to prescribe Regulations in order to govern such transactions. In this Webinar, we shall understand the FEMA regulations governing International Financial Services Centre (IFSC) and Offshore Banking Unit (OBU).
Foreign Currency and Foreign Currency Accounts for Residents under FEMADVSResearchFoundatio
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency that can held by an individual in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the regulation which governs the possession of foreign currency in India and the various types of Foreign Current Accounts that can opened by an Indian resident and the related conditions.
Objectives & Agenda :
The Regulations under FEMA regulate a transaction based on whether the transaction is a 'Capital Account Transaction' or a 'Current Account Transaction'. In this Webinar we shall understand the Definition of the terms 'Capital Account Transactions' and 'Current Account Transactions'. We will also look at various transactions covered and the limits applicable to such transactions.
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
Key Takeaways:
Recent amendment in FDI policy for foreign investment
Ambiguities relating to the amendment
Probable impact of the changes in the policy
Overview of other countries' rule for strategic takeovers
WTO principles and inference
Objectives & Agenda :
To understand the regulations under Foreign Exchange Management Act, 1999, relating to Transfer of Capital Instruments of an Indian Company by or to a Person resident outside India. In this webinar, we shall look at the various circumstances of such transfers and the conditions to be adhered to. We shall also look at the Pricing Guidelines, Mode of Payment and provisions for Opening of Escrow account and Deferred payment of consideration in transfers between Residents and Non-residents.
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
Foreign exchange is applicable on all type of foreign inflow in the India. Fema is applicable venture funding in india. all investment by NRI in india subject to FEMA regulations.
In a move to further rationalize and liberalise the overseas investment central Government and Reserve Bank of India notified Foreign Exchange Management (Overseas Investment) Rules, 2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 respectively on 22 Aug 2022.
The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics. Immense clarity on Overseas Direct Investment and Overseas Portfolio Investment has been brought in and various overseas investment related transactions that were earlier under approval route are now under automatic route, significantly enhancing "Ease of Doing Business".
Attached Newsletter is an attempt to cover monthly issues relevant in the context of transactions - covers SEBI, Companies Act, Income Tax, Stamp duty and other regulatory changes
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Long Term Visa (LTV) is granted to the following categories of persons of Bangladesh, Afghanistan and Pakistan coming to India on valid travel documents i.e. valid passport and valid visa, and seeking permanent settlement in India with a view to acquire Indian citizenship:-
i. Members of minority communities in Bangladesh/ Afghanistan/ Pakistan, namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians.
ii. Bangladesh/ Pakistan women married to Indian nationals and staying in India; or Afghanistan nationals married to Indian nationals in India and staying in India.
iii. Indian origin women holding Bangladesh/ Afghanistan/ Pakistan nationality married to Bangladesh/ Afghanistan/ Pakistan nationals and returning to India due to widowhood/ divorce and having no male members to support them in Bangladesh/ Afghanistan/ Pakistan.
iv. Cases involving extreme compassion.
Non-resident Indians are a section of people whose roots belong to India and who have migrated from India. The Indian Government is aware of the importance of Indian Diaspora in the form of NRIs/PIOs which is spread all across the world and which despite being away from India is making significant contribution to the Indian economy on a global platform and to the economic, financial and social benefits which have been brought to India; therefore, it attempts to provide benefits to them to attract their investments. They are also called for taking part in the economy. The Indian government gives lot of benefits to NRI not only with respect to ease of making investment in India but also in Taxation. The investment from NRIs is easy money available and provides the much needed leverage to the economy. The Indian Diaspora today constitutes an important, and inimitable, part of the Indian economy. The PPT discusses about he various account that can be opened by NRIs in India
As per section 92 of the Income Tax Act,1961 “Any
income arising from an international transaction shall
be computed having regard to the arm's length
price” Where in an international transaction two or
more associated enterprises enter into a mutual
agreement or arrangement for the allocation or
apportionment of, or any contribution to, any cost or
expense incurred or to be incurred in connection with
a benefit, service or facility provided or to be
provided to any one or more of such enterprises, the
cost or expense allocated or apportioned to, or, as
the case may be, contributed by, any such enterprise
shall be determined having regard to the arm's
length price of such benefit, service or facility, as the
case may be.
The 2008 Financial Crisis changed the world of Banking. Many malpractices by the Banks and various financial institutions came into light and the regulators started scrutinizing and penalizing them. The world’s most important number “LIBOR” came under the sword of the Regulators. In this article we will explore the origins and the fall of the once revered LIBOR rate.
THERE ARE QUITE A FEW REGULATORY SPACES
WHICH NEEDS TO BE KEPT IN CONSIDERATION
WHILE MAKING THE REPORT. IN THIS ARTICLE WE
SHALL DISCUSS REGARDING DRAFTING AND THE
CONTENT OF VALUATION REPORT ONE BY ONE IN
DETAIL.
One of the important aspect of Start up is raising of funds. Fundraising is a necessary, and most important task in the life of Start ups. IN THIS ARTICLE GIVES PRELIMINARY INSIGHTS INTO FUND RAISING BY STARTUPS
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
1. ||BCAS Study Circle meeting || 26th Aug 2016 ||Presentation by CA. Sudha G. Bhushan|| 09769033172 |
BCAS STUDY CIRCLE MEETING ON FEMA
ANSWERS TO QUESTIONS RAISED IN THE MEETING
1. Are there any restrictions on % of Royalty amount for use of technology or trademark?
No there is no restriction on % of the royalty for use of technology or trademark. First thing to check is
characterisation. Current account transaction or Capital account transaction? Payment of Royalty is
Current account transaction.
There was restriction on % of Royalty earlier, which had been removed in 2010.
Vide press note 8 of 2009 Government did away with any restriction on payment of royalty.
See the press note: http://dipp.nic.in/English/policy/changes/pn8_2009.pdf.
RBI vide A. P. (DIR Series) Circular No. 52 dated May 13, 2010 did away with restriction on
payment of Royalty.
Relevant extracts from the circular is produced below:
“2. In terms of Rule 4 of the Foreign Exchange Management (Current Account Transactions) Rules
2000, prior approval of the Ministry of Commerce and Industry, Government of India, is required for
drawing foreign exchange for remittances under technical collaboration agreements where
payment of royalty exceeds 5% on local sales and 8% on exports and lump-sum payment exceeds
USD 2 million [item 8 of Schedule II to the Foreign Exchange Management (Current Account
Transactions) Rules, 2000]. The Government of India has reviewed the extant policy with regard to
liberalization of foreign technology agreement and it was decided to omit item number 8 of Schedule
II to the Foreign Exchange Management (Current Account Transaction) Rules, 2000, and the entry
relating thereto.
3. Accordingly, AD Category-I banks may permit drawal of foreign exchange by persons for
payment of royalty and lump-sum payment under technical collaboration agreements without the
approval of Ministry of Commerce and Industry, Government of India.”
2. Is there any restriction on payment of commission?
There is no restriction on payment of commission except in the following case
Schedule III, Rule 5 of CAT Rules, 2000 specifies that RBI approval is required to be taken in case of
“Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India
exceeding USD 25,000 or five percent of the inward remittance whichever is more”.
3. Can payment for ESOP be considered as Current Account Transaction (CAT)?
Payment for ESOP is Capital Account Transaction and is governed by Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, notified by the
Reserve Bank vide Notification No. FEMA. 20/2000-RB dated 3rd May 2000, as amended from time to
time.
4. Can Loan under LRS be given to third parties?
Regulation 4 of Foreign Exchange Management (Permissible Capital Account Transactions)
Regulations, 2000, Schedule 1 read with Master Direction No. 7/2015-16 para 6 clause V gives an
inference that a resident can give loan to third party in foreign currency.
2. ||BCAS Study Circle meeting || 26th Aug 2016 ||Presentation by CA. Sudha G. Bhushan|| 09769033172 |
Relevant extracts of Master Direction No. 7/2015-16 dated January 1 ,2016 produced below.
The permissible capital account transactions by an individual under LRS are:
i. opening of foreign currency account abroad with a bank;
ii. purchase of property abroad;
iii. making investments abroad- acquisition and holding shares of both listed and unlisted
overseas company or debt instruments; acquisition of ESOPs (the Scheme is in addition to
acquisition of ESOPs linked to ADR / GDR and acquisition of qualification shares); investment in
units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes;
iv. setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August 05, 2013)
outside India for bonafide business subject to the terms & conditions stipulated in Notification
No FEMA.263/ RB-2013 dated March 5, 2013;
v. extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are
relatives as defined in Companies Act, 1956.
5. Is Profit on sale of property/shares by NRI is a CAT?
Notification FEMA / 21 regulates investment in immovable property by NRIs and PIO in India. Similarly,
Notification FEMA 20 regulates investment in shares of Indian company by NRIs/PIOs. As the investment
in these assets are regulated, sale of the said assets are also regulated capital account transactions.
As such, the gain on sale of these assets are capital account transactions.
6. Whether remittance abroad to a consultant for setting up a company is a Current Account Transaction
or a capital account transaction as ultimately that amount will be capitalised in the books in the books
of both the entities?
Yes, it is Current Account Transaction. A transaction may be capital account transaction for
accounting purpose but it may be treated as current account transaction still. Treatment in Books of
accounts does not determine the distinction between the Current Account Transaction or a capital
account transaction under FEMA. The distinction between Current Account Transaction or a capital
account transaction is determined from the Balance of Payment of country.
For example, import of machinery on payment of cash or on normal credit terms of the vendor will be
regarded as a current account transaction. The importer may capitalise it in his account books and
claim depreciation thereon. As far as the country is concerned, it is a trade transaction. However, if
the same machinery is imported on deferred credit basis or is funded out of ECB, etc, then the credit
beyond twelve months (as less than 12 months again would fall within the definition of ‘Current
Account Transactions’) would result in the creation of the long-term liability outside India and
therefore, be termed as a capital account transaction.
7. Whether Purchase of a residential accommodation overseas for a director of the Indian company is
permitted CAT?
Purchase of immovable property outside India is a Capital Account transaction. The acquisition of
immovable property outside India is governed by FEMA 7 Foreign Exchange Management
(Acquisition and transfer of immovable property outside India) Regulations, 2015.
A company incorporated in India having overseas offices may acquire immovable property outside
India
for its business and
for residential purposes of its staff,
provided total remittances do not exceed the following limits prescribed for initial and recurring
expenses, respectively:
a. 15% of the average annual sales/ income or turnover of the Indian entity during the last
two financial years or up to 25% of the net worth, whichever is higher;
3. ||BCAS Study Circle meeting || 26th Aug 2016 ||Presentation by CA. Sudha G. Bhushan|| 09769033172 |
b. 10% of the average annual sales/income or turnover during the last two financial years.
8. As per Schedule III remittance for consultancy services for a project is restricted to USD 1 million. What
do we mean by Project? Are bank monitoring such remittances? Are they seeking any declaration
from the remitter?
The term “Project” is not defined. However, in common parlance, Project can be that of construction
of a building or a residential complex or erection of the plant and machinery etc. It is pertinent to note
that the restriction of remitting upto USD 1 million is per Project and not per consultant. The Reserve
Bank does not prescribe the documents which should be verified by the Authorised Persons while
releasing foreign exchange for current account transactions. In this connection, attention of
authorized persons is drawn to sub-section (5) of Section 10 of the FEMA, 1999 which provides that an
authorised person shall require any person desiring to transact in foreign exchange to make such a
declaration and to give such information as will reasonably satisfy him that the transaction will not
involve and is not designed for the purpose of any contravention or evasion of the provisions of the
FEMA or any rule, regulation, notification, direction or order issued there under.
9. Can Individual invest in a foreign company which buys property and leases out the same under LRS.
Can it be said to be bona fide business transaction?
An Indian Party which includes an Individual can make overseas direct investment in any bonafide
activity.
Real estate as defined in Notification No. FEMA 120/RB-2004 dated July 7, 2004 and banking business
are the prohibited sectors for overseas direct investment. Real estate business means buying and
selling of real estate or trading in Transferable Development Rights (TDRs) but does not include
development of townships, construction of residential/commercial premises, roads or bridges.
leasing of property by a foreign company amounts to real estate business and such activity is not
permissible.
10. Can Grand mother make remittance for education of Grand daughter?
Yes.
11. Will advance given to subsidiary outside India for purchases be considered as CAT?
Advance given to Subsidiary for any purpose: - Capital Account Transaction
Advance given to subsidiary for purchase of raw material/import: - Current Account
Transaction. Advance Payment is subjected to AD approval.
12. Is payment of damages based on contract for CAT also a CAT? Dispute on non payment of Shipping
Freight? If Imports are CAT whether Shipping freight also CAT?
Yes.
13. Whether Guarantee fees payable to the holding company for the guarantee extended to Indian
subsidiary is a permissible CAT?
Guarantee extended to Indian subsidiary is structured obligation as defined in ECB Regulations. RBI
approval may be required for payment of Guarantee fee.
14. Can we say all CAT not listed in any of the 3 schedules to the CAT Rules, 2000 are freely permissible?
Yes, until unless regulated by any other regulation. For eg. Interest payment is although CAT but is
regulated by ECB regulations.
4. ||BCAS Study Circle meeting || 26th Aug 2016 ||Presentation by CA. Sudha G. Bhushan|| 09769033172 |
15. Whether payment of franchisee acquisition is permissible CAT?
Yes.
16. Can a Resident Individual gift money to an NRI from his NRO Account?
Is the question correct? Can a resident maintain the NRO account? May be possible in case of NRI
changing the residential status to Resident.
In case of change in residential Status of a person from Non Resident to Resident: - Non-resident
(ordinary) rupee accounts may be re-designated as resident Rupee accounts on return of the
account holder to India for taking up employment, or for carrying on business or vocation or for any
other purpose indicating his intention to stay in India for an uncertain period. Where the account
holder is only on a temporary visit to India, the account should continue to be treated as non-resident
during such visit.
Once resident he can avail to remit under Liberalised Remittance Scheme (LRS). He can gift under
LRS.
Can a Resident Individual gift money to an NRI in rupees? Yes, Resident Individual can gift money to
an NRI under LRS