Please Help: Payment to foreign Loan
Posted Date : 16-Feb-2016 , 11:31:33 am | Posted By Mohit Kumar
Lets start with example a company name "A"(USA) have reimburse the expenses of "B"
(India) in FY 2012Â2013. which is outstanding as balance in balance sheet of "B" amounting
to 15 lakh till FY 2015Â2016 . Relation between "A" nd "B" is holding and subsidary i.e. A is
Holding.
In the balance of last year a notes is shown that it is non compliance of FEMA .
Also there is no reporting to RBI .
Should we make the payment or what should we do ? Also there is non compliance of FEMA
then How?
Please clear the provision regarding this .
(India) in FY 2012Â2013. which is outstanding as balance in balance sheet of "B" amounting
to 15 lakh till FY 2015Â2016 . Relation between "A" nd "B" is holding and subsidary i.e. A is
Holding.
In the balance of last year a notes is shown that it is non compliance of FEMA .
Also there is no reporting to RBI .
Should we make the payment or what should we do ? Also there is non compliance of FEMA
then How?
Please clear the provision regarding this .
Category : FEMA | Answers : 0 | Comments : 1 | Hits : 491
Answers:
Comments
Gaurav Navedia
22-Dec-2017 , 08:11:57 pmFirst of all reimbursement of expenses take place if B has incurred expenses on behalf of A. If this is the case then it is not FEMA violation on any side to transfer funds from A to B under the head Reimbursement of expenses. However if it is merely a funding transaction from A to B. Then in order to rectify the case B has to approach its AD Bank for post facto approval of loan which it's AD will forward to RBI.