The document discusses regulations related to balance sheets, foreign exchange management, and international transactions per the Companies Act, Income Tax Act, and Foreign Exchange Management Act of India. Key points include:
1. Balance sheets must provide a true and fair view of the company's financial position and comply with Schedule VI of the Companies Act.
2. The Income Tax Act contains several sections related to computing income from international transactions and reporting requirements.
3. FEMA regulates foreign exchange transactions and capital/current account transactions, requiring certain approvals and documentation for foreign investment, borrowings, remittances abroad, and other financial activities involving foreign exchange.
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
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.
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.
it will help you to understand this concept very easily.
It contains definition of capital account transaction,explanation of definition, classification of capital account transaction (FDI, Portfolio investment, other investment & reserve account)
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.
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
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.
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.
it will help you to understand this concept very easily.
It contains definition of capital account transaction,explanation of definition, classification of capital account transaction (FDI, Portfolio investment, other investment & reserve account)
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 :
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.
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.
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.
Why does India need FDI, How will FDI benefit us, What will be the disadvantages? Read everything you wanted to know about Foreign Direct Investment and the role played by Foreign Exchange Management Act, in this Research Report from Resurgent India
This presentation explains the impact of both India Foreign Exchange Laws and the India Transfer Pricing Regulations on the import and export transactions done with an Indian Entity.
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.
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.
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.
Why does India need FDI, How will FDI benefit us, What will be the disadvantages? Read everything you wanted to know about Foreign Direct Investment and the role played by Foreign Exchange Management Act, in this Research Report from Resurgent India
This presentation explains the impact of both India Foreign Exchange Laws and the India Transfer Pricing Regulations on the import and export transactions done with an Indian Entity.
As per the requirements of said Regulation we have devised our Articles in following part:
1. Checklist for stock exchanges submission;
2. Checklist for shareholders communication
3. Penalty for non-compliance of LODR
4. SEBI FAQs for LODR
5. Board Meeting Tasks
6. Board shall ensure
Which would help you to comply with the requirement of said new regultion for the compliances due after the quarter ended on 31st December, 2015.
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.
How to Begin Secretarial Audit (Compliance of All Applicable Law )Pavan Kumar Vijay
My Presentation at ICSI on 13/03/2015- "How to Begin- Secretarial Audit".
Secretarial Audit is a process to check compliance with –
• the provisions of various laws and Rules/Regulations/Procedures,
• maintenance of books, records etc,
• by an independent professional to ensure that the company has complied with the legal and procedural requirements and also followed due processes.
• the Board of Directors has to give explanation in the Board’s Report to every qualification and observation or other adverse remark made by the Secretarial Auditor.
•So we can say that the Board of Directors has to ensure that there should be a system in the company through which Compliance Officer can Control on all compliances under all applicable Laws.
Read more...
This slideshare contains all the provision of CARO 2015 which is applicable from 10th of April 2015.
Further relevant extract from Companies Act 2013 has been made.
Key Takeaways:
- What is Single Master Form
- Registration in FIRMS Portal
- Structure of FC-GPR
- Procedures and documents required
- Reason for rejection of form
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at computation of capital gains in specific cases such as Insurance compensation, Compulsory acquisition, Distribution of Assets, Slump Sale and the provisions in case of sale of Depreciable Assets. We will also look at provisions which provide for full value of consideration in certain cases. Finally, the Webinar will touch upon relevant Judicial Precedents.
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
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".
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
The Good News, newsletter for June 2024 is hereNoHo FUMC
Our monthly newsletter is available to read online. We hope you will join us each Sunday in person for our worship service. Make sure to subscribe and follow us on YouTube and social media.
HANUMAN STORIES: TIMELESS TEACHINGS FOR TODAY’S WORLDLearnyoga
Hanuman Stories: Timeless Teachings for Today’s World" delves into the inspiring tales of Hanuman, highlighting lessons of devotion, strength, and selfless service that resonate in modern life. These stories illustrate how Hanuman's unwavering faith and courage can guide us through challenges and foster resilience. Through these timeless narratives, readers can find profound wisdom to apply in their daily lives.
Lesson 9 - Resisting Temptation Along the Way.pptxCelso Napoleon
Lesson 9 - Resisting Temptation Along the Way
SBs – Sunday Bible School
Adult Bible Lessons 2nd quarter 2024 CPAD
MAGAZINE: THE CAREER THAT IS PROPOSED TO US: The Path of Salvation, Holiness and Perseverance to Reach Heaven
Commentator: Pastor Osiel Gomes
Presentation: Missionary Celso Napoleon
Renewed in Grace
The Chakra System in our body - A Portal to Interdimensional Consciousness.pptxBharat Technology
each chakra is studied in greater detail, several steps have been included to
strengthen your personal intention to open each chakra more fully. These are designed
to draw forth the highest benefit for your spiritual growth.
Exploring the Mindfulness Understanding Its Benefits.pptxMartaLoveguard
Slide 1: Title: Exploring the Mindfulness: Understanding Its Benefits
Slide 2: Introduction to Mindfulness
Mindfulness, defined as the conscious, non-judgmental observation of the present moment, has deep roots in Buddhist meditation practice but has gained significant popularity in the Western world in recent years. In today's society, filled with distractions and constant stimuli, mindfulness offers a valuable tool for regaining inner peace and reconnecting with our true selves. By cultivating mindfulness, we can develop a heightened awareness of our thoughts, feelings, and surroundings, leading to a greater sense of clarity and presence in our daily lives.
Slide 3: Benefits of Mindfulness for Mental Well-being
Practicing mindfulness can help reduce stress and anxiety levels, improving overall quality of life.
Mindfulness increases awareness of our emotions and teaches us to manage them better, leading to improved mood.
Regular mindfulness practice can improve our ability to concentrate and focus our attention on the present moment.
Slide 4: Benefits of Mindfulness for Physical Health
Research has shown that practicing mindfulness can contribute to lowering blood pressure, which is beneficial for heart health.
Regular meditation and mindfulness practice can strengthen the immune system, aiding the body in fighting infections.
Mindfulness may help reduce the risk of chronic diseases such as type 2 diabetes and obesity by reducing stress and improving overall lifestyle habits.
Slide 5: Impact of Mindfulness on Relationships
Mindfulness can help us better understand others and improve communication, leading to healthier relationships.
By focusing on the present moment and being fully attentive, mindfulness helps build stronger and more authentic connections with others.
Mindfulness teaches us how to be present for others in difficult times, leading to increased compassion and understanding.
Slide 6: Mindfulness Techniques and Practices
Focusing on the breath and mindful breathing can be a simple way to enter a state of mindfulness.
Body scan meditation involves focusing on different parts of the body, paying attention to any sensations and feelings.
Practicing mindful walking and eating involves consciously focusing on each step or bite, with full attention to sensory experiences.
Slide 7: Incorporating Mindfulness into Daily Life
You can practice mindfulness in everyday activities such as washing dishes or taking a walk in the park.
Adding mindfulness practice to daily routines can help increase awareness and presence.
Mindfulness helps us become more aware of our needs and better manage our time, leading to balance and harmony in life.
Slide 8: Summary: Embracing Mindfulness for Full Living
Mindfulness can bring numerous benefits for physical and mental health.
Regular mindfulness practice can help achieve a fuller and more satisfying life.
Mindfulness has the power to change our perspective and way of perceiving the world, leading to deeper se
The Book of Joshua is the sixth book in the Hebrew Bible and the Old Testament, and is the first book of the Deuteronomistic history, the story of Israel from the conquest of Canaan to the Babylonian exile.
The PBHP DYC ~ Reflections on The Dhamma (English).pptxOH TEIK BIN
A PowerPoint Presentation based on the Dhamma Reflections for the PBHP DYC for the years 1993 – 2012. To motivate and inspire DYC members to keep on practicing the Dhamma and to do the meritorious deed of Dhammaduta work.
The texts are in English.
For the Video with audio narration, comments and texts in English, please check out the Link:
https://www.youtube.com/watch?v=zF2g_43NEa0
In Jude 17-23 Jude shifts from piling up examples of false teachers from the Old Testament to a series of practical exhortations that flow from apostolic instruction. He preserves for us what may well have been part of the apostolic catechism for the first generation of Christ-followers. In these instructions Jude exhorts the believer to deal with 3 different groups of people: scoffers who are "devoid of the Spirit", believers who have come under the influence of scoffers and believers who are so entrenched in false teaching that they need rescue and pose some real spiritual risk for the rescuer. In all of this Jude emphasizes Jesus' call to rescue straying sheep, leaving the 99 safely behind and pursuing the 1.
What Should be the Christian View of Anime?Joe Muraguri
We will learn what Anime is and see what a Christian should consider before watching anime movies? We will also learn a little bit of Shintoism religion and hentai (the craze of internet pornography today).
Presentation on Fema by CA. Sudha G. Bhushan [balance sheet and fema]
1. By Sudha G. Bhushan
BALANCE SHEET AND FEMA
REGULATIONS
Presentation on FEMA by CA. Sudha G. Bhushan
2. Companies Act, 1956
Section 211 of the companies Act says
Every balance sheet of a company shall give a
true and fair view of the state of affairs of the
company as at the end of the financial year
and shall, subject to the provisions of this
section, be in the form set out in Part I of
Schedule VI, or as near thereto as
circumstances admit
Presentation on FEMA by CA. Sudha G. Bhushan
3. Every profit and loss account of a company
shall give a true and fair view of the profit or
loss of the company for the financial year and
shall, subject as aforesaid, comply with the
requirements of Part II of Schedule VI, so far
as they are applicable thereto
Presentation on FEMA by CA. Sudha G. Bhushan
4. Income Tax Act
Section 92 :- Computation of Income from
International Transaction
Section 92 A :- Associated enterprise
Section 92B:- Meaning of International
transaction
Section 92E :- Report from Accountant
Presentation on FEMA by CA. Sudha G. Bhushan
5. 1. List of associated enterprises with which the company has entered in to
International transaction?
2. Has the assessee entered into any international transaction(s) in respect of
purchase/sale of raw material, consumables or any other supplies for
assembling / processing /manufacturing of goods/articles from/to associated
enterprises
3. Has the assessee entered into any international transaction(s) in respect of
purchase/sale of any other tangible moveable/immovable property or lease of
such property?
4. Has the assessee entered into any international transaction(s) in respect of
purchase/sale/use of intangible property such as know-how, patents,
copyrights, licenses
5. Has the assessee entered into any international transaction(s) in respect of
services such as financial, administrative, technical, commercial services
6. Has the assessee entered into any international transaction(s) in respect of
granting/receiving loans/ advances to or from associated enterprise.
Presentation on FEMA by CA. Sudha G. Bhushan
6. Foreign Exchange Management
Act, 1999
Save as otherwise provided in this Act, rules or regulations made
thereunder, or with the general or special permission of the Reserve
Bank, no person shall—
(a) deal in or transfer any foreign exchange or foreign
security to any person not being an authorised person;
(b) make any payment to or for the credit of any person
resident outside India in any manner;
(c) receive otherwise (than) through an authorised person,
any payment by order or on behalf of any person resident outside India
in any manner;
(d) enter into any financial transaction in India as
consideration for or in association with acquisition or creation or transfer
of a right to acquire, any asset outside India by any person.
Presentation on FEMA by CA. Sudha G. Bhushan
9. Items at liability side
Share capital
Reserve and Surplus
Secured Loans
Unsecured Loans
Current Liabilities and provisions
Presentation on FEMA by CA. Sudha G. Bhushan
10. Items at asset Side
Fixed Assets
Investments
Current Assets, Loans and Advances
Misc Expenditure
Profit and loss account [Cr. Balance]
Presentation on FEMA by CA. Sudha G. Bhushan
12. Share capital
Equity Share capital
Authorised share capital
Paid up share capital
Preference Share capital
Presentation on FEMA by CA. Sudha G. Bhushan
13. Routes
Foreign Direct Investment is freely permitted
in almost all sectors.
Automatic Route - The foreign investor or the
Indian company does not require any
approval from the Reserve Bank or
Government of India for the investment.
Government Route - Prior approval of the
Government of India, Ministry of Finance,
Foreign Investment Promotion Board (FIPB)
is required.
Presentation on FEMA by CA. Sudha G. Bhushan
14. Intimation of Share Capital
Particulars Time Frame Forms With whom
Authorised dealer category -I bank,
with the regional office of the Reserve
Bank under whose jurisdiction the
registered office of the company is
situated
Intimation to RBI about the amount of
consideration received (in the Form of within 30 days from the date of
Inward remittance or in the form of receipt of the amount of
debit to NRE/FCNR account consideration Annexure II and Annexure III
Within 180 days from the date of
Shares to be allotted receipt of consideration
Within 30 days from the date of issue
Reporting of issue of shares of shares Form FC- GPR (part A) along with
A certificate from the Company
Secretary
Presentation on FEMAcertificate from Auditors of the
A by CA. Sudha G. Bhushan
company
15. FC GPR Form
Signed by Managing Director/Director/Secretary of the Company
and submitted to the Authorised Dealer of the company, who will
forward it to the Reserve Bank.
The following documents have to be submitted along with Part
A:
(i) A certificate from the Company Secretary of the company certifying that :
a) all the requirements of the Companies Act, 1956 have been complied with;
b) terms and conditions of the Government’s approval, if any, have been complied
with;
c) the company is eligible to issue shares under these Regulations; and
d) the company has all original certificates issued by authorised dealers in India
evidencing receipt of amount of consideration.
(ii) A certificate from Statutory Auditor or Chartered Accountant indicating
the manner of arriving at the price of the shares issued to the persons
resident outside India.
Presentation on FEMA by CA. Sudha G. Bhushan
16. Annual Return
Part B of Form FC GPR
To be submitted by 31st of July every year.
All investments by way of direct/portfolio
investments/re-invested earnings/others in
the Indian company made during the
previous year.
Presentation on FEMA by CA. Sudha G. Bhushan
17. Issue price
Listed Companies :- on the basis of SEBI
guidelines.
Unlisted companies :- Valuation of shares has
to be done by a Chartered Accountant in
accordance with the guidelines issued by the
erstwhile Controller of Capital Issues (CCI).
Presentation on FEMA by CA. Sudha G. Bhushan
18. Preference Share
Preference shares to be considered as debt.
Accordingly, all the norms applicable for
ECBs, viz. eligible borrowers, recognized
lenders, amount and maturity, end- use
stipulations, etc. shall apply.
Presentation on FEMA by CA. Sudha G. Bhushan
21. Reserves and Surplus
Share Premium account
Profit and loss account
Direct Income
Indirect Income
Presentation on FEMA by CA. Sudha G. Bhushan
22. Share Premium Account
Section 78 of the Act reads as follows:
(1) Where a company issues shares at a premium, whether for
cash or otherwise, a sum equal to the aggregate amount or value
of the premiums on those shares shall be transferred to an
account, to be called the security premium account' ;
(2) The security premium account may, notwithstanding
anything in sub-section (1), be applied by the company---
(a) in paying up unissued shares of the company to be issued to members
of the company as fully paid bonus shares ;
(b) in writing off the preliminary expenses of the company ;
(c) in writing off the expenses of, or the commission paid or discount
allowed on, any issue of shares or debentures of the company ; or
(d) in providing for the premium payable on the redemption of any
redeemable preference shares or of any debentures of the company.
Presentation on FEMA by CA. Sudha G. Bhushan
23. Profit and loss account
Nature of Business
Commission income
Trading of commodities
Manufacturing of product
Presentation on FEMA by CA. Sudha G. Bhushan
24. LOANS
External Commercial Borrowings
Trade Credit
Share application money/ Advances
from Customers
Presentation on FEMA by CA. Sudha G. Bhushan
25. External Commercial Borrowings
External Commercial Borrowings (ECB) refer
to commercial loans in the form of bank
loans, buyers’ credit, suppliers’ credit,
securitized instruments (e.g. floating rate
notes and fixed rate bonds) availed of from
non-resident lenders with minimum average
maturity of 3 years.
Presentation on FEMA by CA. Sudha G. Bhushan
26. Monthly Return
Borrowers are required to submit ECB-2
Return certified by the designated AD bank
on monthly basis so as to reach DSIM,
Reserve Bank within seven working days from
the close of month to which it relates.
Presentation on FEMA by CA. Sudha G. Bhushan
27. Trade Credits
Trade Credits (TC) refer to credits extended for imports
directly by the overseas supplier, bank and financial
institution for maturity of less than three years.
Depending on the source of finance, such trade credits
include suppliers’ credit or buyers’ credit.
Suppliers’ credit relates to credit for imports into India extended
by the overseas supplier.
Buyers’ credit refers to loans for payment of imports in to India
arranged by the importer from a bank or financial institution
outside India for maturity of less than three years.
It may be noted that buyers’ credit and suppliers’ credit for
three years and above come under the category of External
Commercial Borrowings (ECB) which are governed by ECB
guidelines.
Presentation on FEMA by CA. Sudha G. Bhushan
28. AD banks are permitted to approve trade credits for
imports into India up to USD 20 million per import
transaction for imports permissible under the current
Foreign Trade Policy of the DGFT with a maturity period up
to one year from the date of shipment. For import of capital
goods as classified by DGFT, AD banks may approve trade
credits up to USD 20 million per import transaction with a
maturity period of more than one year and less than three
years from the date of shipment. No roll-over/extension will
be permitted beyond the permissible period.
AD banks shall not approve trade credit exceeding USD 20
million per import transaction.
Presentation on FEMA by CA. Sudha G. Bhushan
30. Fixed Asset
From above we can see that foreign investment is not allowed in real
estate only if the company proposes to engage in the business of real
estate.
Therefore the inference can be drawn that the prohibition is with
relation to investment in the business of real estate and not in the
immovable property[ residential /commercial] for carrying out the
business activities.
The sale and purchase of immovable property in India by a person
resident outside India is regulated by the provisions Foreign Exchange
Management (Acquisition and Transfer of Immovable Property in India)
Regulations, 2000. As per FOREIGN EXCHANGE MANAGEMENT
(ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN
INDIA) REGULATIONS, 2000
Presentation on FEMA by CA. Sudha G. Bhushan
31. Investments
Direct Investment Outside India
The Indian Party submits Form ODI, duly completed,
to the designated branch of an authorized dealer. In
this connection the following must be noted:
(a) The Form ODI must be submitted in duplicate to
the AD for the purpose of making remittance
towards investment in overseas JV/WOS.
(b) The form should be complete in all respects and
accompanied by:
(i) a certificate from the statutory auditors in the format
given in the form, and
(ii) a certified copy of the resolution of the Board of Directors
approving the investment.
Presentation on FEMA by CA. Sudha G. Bhushan
32. Unique Identification Number
On receipt of the form ODI from the AD Category – I bank,
Reserve Bank will allot a Unique Identification Number for each
JV/WOS outside India and the Indian Party must quote such
number in all its communications and reports to the Reserve
Bank and the authorized dealer.
An Indian Party is required to:
(i) receive share certificates or any other document as an
evidence of investment in the foreign entity to the satisfaction of the
Reserve Bank within six months, or such further period as Reserve Bank
may permit, from the date of effecting remittance
(ii) repatriate to India, all dues receivable from the foreign
entity, like dividend, royalty, technical fees etc., within 60 days of its
falling due, or such further period as the Reserve Bank may permit.
Presentation on FEMA by CA. Sudha G. Bhushan
34. Export
As per Section 7 of the FEMA,19999 - It is
obligatory on the part of the exporter to
realize and repatriate the amount
representing the full value of goods or
software exported to India within twelve
months from the date of Export
Presentation on FEMA by CA. Sudha G. Bhushan
35. Every exporter of goods or software in physical form or through any
other form, either directly or indirectly, to any place outside India,
shall furnish to the specified authority, a declaration in one of the
forms set out in the Schedule and supported by such evidence as may
be specified, containing true and correct material particulars
including the amount representing—
(i) the full export value of the goods or software; or
(ii) if the full export value is not ascertainable at the time of export,
the value which the exporter, having regard to the prevailing market
conditions expects to receive on the sale of the goods or the software
in overseas market, and affirms in the said declaration that the full
export value of goods (whether ascertainable at the time of export or
not) or the software has been or will within the specified period be,
paid in the specified manner
Presentation on FEMA by CA. Sudha G. Bhushan
36. Various Forms
Form GR :To be completed in duplicate for export otherwise than
by Post including export of software in physical form i.e.,
magnetic tapes/discs and paper media.
Form SDF: To be completed in duplicate and appended to the
shipping bill, for exports declared to Customs Offices notified by
the Central Government which have introduced Electronic Data
Interchange (EDI) system for processing shipping bills notified by
the Central Government.
Form PP : To be completed in duplicate for export by Post.
Form SOFTEX: To be completed in triplicate for declaration of
export of software otherwise than in physical form, i.e., magnetic
tapes/discs, and paper media.
Presentation on FEMA by CA. Sudha G. Bhushan
37. Pre incorporation expenses:- Exceeding USD
1,00,000 shall require prior approval of RBI as
per schedule III of the FOREIGN EXCHANGE
MANAGEMENT (CURRENT ACCOUNT
TRANSACTIONS) RULES, 2000.
Presentation on FEMA by CA. Sudha G. Bhushan
38. Payment made abroad
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Consultancy Fees :- US 1,000,000, per
project, for any consultancy service procured
from outside India
Royalty Fees :- Remittances under technical
collaboration agreements where payment of
royalty exceeds 5% on local sales and 8% on
exports and lump sum payment exceeds US $
2 million : Approval from Central Government
Presentation on FEMA by CA. Sudha G. Bhushan
39. Import
Regulated by the Directorate General of
Foreign Trade (DGFT) under the Ministry of
Commerce & Industry, Department of
Commerce, Government of India.
Applications by persons, firms and companies
for making payments, exceeding USD 500 or
its equivalent, towards imports into India
must be made in Form A-1
Presentation on FEMA by CA. Sudha G. Bhushan
40. In terms of the extant regulations, remittances against
imports should be completed not later than six months
from the date of shipment, except in cases where amounts
are withheld towards guarantee of performance, etc.
AD Category - I banks may permit settlement of import
dues delayed due to disputes, financial difficulties, etc.
Interest in respect of such delayed payments may be
permitted in terms of the directions.
Deferred payment arrangements, including suppliers and
buyers credit, providing for payments beyond a period of
six months from date of shipment up to a period of less
than three years, are treated as trade credits for which the
procedural guidelines laid down in the Master Circular for
External Commercial Borrowings and Trade Credits may be
followed
Presentation on FEMA by CA. Sudha G. Bhushan
41. Documentation
In case of imports, where value of foreign exchange
remitted/paid for import into India exceeds USD 100,000 or
its equivalent, the AD through whom the relative
remittance was made, shall ensure that the importer
submits :-
The Exchange Control copy of the Bill of Entry for home
consumption, or
The Exchange Control copy of the Bill of Entry for
warehousing, in case of 100% Export Oriented Units or
Customs Assessment Certificate or Postal Appraisal Form,
as declared by the importer to the Customs Authorities,
where import has been made by post, as evidence that the
goods for which the payment was made have actually been
imported into India
Presentation on FEMA by CA. Sudha G. Bhushan
42. Realization of Foreign Exchange
A person shall sell the realised foreign exchange to an
authorised person under clause , within the period of ninety
days from the date of its receipt.
Any person who has acquired or purchased foreign
exchange for any purpose mentioned in the declaration
made by him to an authorised person does not use it for
such purpose or for any other purpose for which purchase
or acquisition of foreign exchange is permissible under the
provisions of the Act or the rules or regulations or direction
or order made thereunder, shall surrender such foreign
exchange or the unused portion thereof to an authorised
person within a period of sixty days from the date of its
acquisition or purchase by him.
Presentation on FEMA by CA. Sudha G. Bhushan
44. Capital Account Transactions
Current Account Transactions
Presentation on FEMA by CA. Sudha G. Bhushan
45. Current Account
current account transaction” means a transaction other
than a capital account transaction and without prejudice to
the generality of the foregoing such transaction includes,—
(i) payments due in connection with foreign trade,
other current business, services, and short-term banking
and credit facilities in the ordinary course of business,
(ii) payments due as interest on loans and as net
income from investments,
(iii) remittances for living expenses of parents,
spouse and children residing abroad, and
(iv) expenses in connection with foreign travel,
education and medical care of parents, spouse and children
Presentation on FEMA by CA. Sudha G. Bhushan
46. Capital Account
Capital account transaction” means a
transaction which alters the assets or
liabilities, including contingent liabilities,
outside India of persons resident in India or
assets or liabilities in India of persons resident
outside India, and includes transactions
referred to in sub-section (3) of section 6
Presentation on FEMA by CA. Sudha G. Bhushan
47. Any person may sell or draw foreign
exchange to or from an authorised person if
such sale or drawls is a current account
transaction:
Provided that the Central Government may,
in public interest and in consultation with the
Reserve Bank, impose such reasonable
restrictions for current account transactions
as may be prescribed
Presentation on FEMA by CA. Sudha G. Bhushan
48. Capital account transactions.
6. (1) Subject to the provisions of sub-section (2), any person may sell or draw foreign exchange to or from an
authorised person for a capital account transaction.
(2) The Reserve Bank may, in consultation with the Central Government, specify
(a) any class or classes of capital account transactions which are permissible;
(b) the limit up to which foreign exchange shall be admissible for such transactions:
Provided that the Reserve Bank shall not impose any restriction on the drawal of foreign exchange for payments
due on account of amortization of loans or for depreciation of direct investments in the ordinary course of
business.
(3) Without prejudice to the generality of the provisions of sub-section (2), the Reserve Bank may, by regulations,
prohibit, restrict or regulate the following—
(a) transfer or issue of any foreign security by a person resident in India;
(b) transfer or issue of any security by a person resident outside India;
(c) transfer or issue of any security or foreign security by any branch, office or agency in India of a person
resident outside India;
(d) any borrowing or lending in foreign exchange in whatever form or by whatever name called;
(e) any borrowing or lending in rupees in whatever form or by whatever name called between a person
resident in India and a person resident
Presentation on FEMA by CA. Sudha G. Bhushan
49. outside India;
(f)deposits between persons resident in India and persons resident outside India;
(g)export, import or holding of currency or currency notes;
h)transfer of immovable property outside India, other than a lease not exceeding five years, by a person
resident in India;
(i)acquisition or transfer of immovable property in India, other than a lease not exceeding five years, by a
person resident outside India;
(j)giving of a guarantee or surety in respect of any debt, obligation or other liability incurred—
(i)by a person resident in India and owed to a person resident outside India; or
(ii)by a person resident outside India.
(4) A person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any
immovable property situated outside India if such currency, security or property was acquired, held or owned by
such person when he was resident outside India or inherited from a person who was resident outside India.
(5) A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable
property situated in India if such currency, security or property was acquired, held or owned by such person when
he was resident in India or inherited from a person who was resident in India.
Presentation on FEMA by CA. Sudha G. Bhushan
50. Section 92
Any income arising from an international
transaction shall be computed having
regard to the arm’s length price.
Explanation.—For the removal of doubts, it is
hereby clarified that the allowance for any
expense or interest arising from an
international transaction shall also be
determined having regard to the arm’s length
price.
Presentation on FEMA by CA. Sudha G. Bhushan
51. Section 92E
Every person who has entered into an
international transaction during a previous
year shall obtain a report from an accountant
and furnish such report on or before the
specified date in the prescribed form duly
signed and verified in the prescribed manner
by such accountant and setting forth such
particulars as may be prescribed
Presentation on FEMA by CA. Sudha G. Bhushan
52. International Transaction
For the purposes of this section and sections 92, 92C, 92D and 92E,
“international transaction” means a transaction between two or more
associated enterprises, either or both of whom are non-residents, in the
nature of purchase, sale or lease of tangible or intangible property, or
provision of services, or lending or borrowing money, or any other
transaction having a bearing on the profits, income, losses or assets of
such enterprises, and shall include a mutual agreement or arrangement
between two or more associated enterprises 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.
(2) A transaction entered into by an enterprise with a person other than
an associated enterprise shall, for the purposes of sub-section (1), be
deemed to be a transaction entered into between two associated
enterprises, if there exists a prior agreement in relation to the relevant
transaction between such other person and the associated enterprise, or
the terms of the relevant transaction are determined in substance
between such other person and the associated enterprise
Presentation on FEMA by CA. Sudha G. Bhushan