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Recent

Recent Questions

Question added Jun 26, 2021 FEMA By sanjay kathuria , CA , Central Delhi

answers

1938 views

Q. FDI in LLP by resident of Hong Kong - Is there any notification/circular/regulation issued by RBI/FEMA in which any restrictions/conditions have been imposed regarding foreign contribution in an Indian LLP from Hong Kong latest by 2021

Question added Jul 19, 2019 FEMA By jignesh vora , CA , Ahmedabad

answers

1656 views

Q. make Investment in US,DUBAI and Singapore - I want make investments in business in other country, how much amount i transfer to other country

Question added Jul 19, 2019 FEMA By jignesh vora , CA , Ahmedabad

answers

431 views

Q. NRO to NRE Transfer - I want to transfer money from NRO accounts to NRE account, whether its libel to Income Tax and whats the procedure

Question added Apr 20, 2019 FEMA By C.A.RATNESH MAHAJAN , CA

answers

1903 views

Q. LRS - UNDER LRS one can send the money up to 2.50 lac $ . can we send the amount from our account as well as from my sons a/c by transfering the money from my account

Question added Jan 19, 2019 FEMA By LALIT MOHAN AHUJA , CA , NEW DELHI

answers

471 views

Q. FCNR - In 2013, Export of Personnel Health Products was made. The payment was received thru banking channel in Convertible foreign exchange. FCNR were not received. The bank is insisting on FCNR for clearing. However, FCNR is issued by receiving Banker of which the company has no knowledge who was negotiating banker, nor its bankers presently are able to tell. What needs to be done?

Question added Dec 14, 2017 FEMA By Akshay Garg , Delhi

answers

434 views

Q. FEMA - whether person resident in india has to seek any permission under Foreign Exchange Management Act 1999 or for creating a discretionary Family trust in USA and Transfer of Funds from USA Bank Account to that Family Trust? ( No Transfer of funds from India)

Question added Jul 28, 2016 FEMA By BHAVESH , CA , Ahmedabad

answers

544 views

Q. FOREX - Is there any limit for FOREX sending into India by way of gift? What would be consequences if the recipient is Pakistan citizen receiving the FOREX into India ?

Question added Apr 26, 2016 FEMA By Raman , Patiala

answers

445 views

Q. MONEY TRANSFER AND MONEY EXCHANGE BUSINESS - Whether any licence is required to do the business of money transfer and money exchange? if yes what is the procedure to get that licence

Question added Mar 08, 2016 FEMA By Abhishek K , CA , Hyderabad

answers

519 views

Q. FEMA Share Valuation - RBI has prescribed pricing guidelines for fair valuation of shares to be issued against FDI. Suppose, notice for EGM for issue of shares is issued in first week of Jan 2016, wherein price has to be mentioned. For pricing, fair valuation certificate has to be given on notice or near to notice date. Subsequently, FDI is received in first week of Feb 2016. So, allotment will be made only after inward remittance. Now, FCGPR is proposed to be filed in current month, March 2016. So will the fair valuation certificate issued and dated in Jan 2016 hold good for attaching the same with FCGPR which will be filed in March 2016. Let me know the thoughts.

Question added Feb 16, 2016 FEMA By Mohit Kumar

answers

530 views

Q. Payment to foreign Loan - 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 .

Question added Jan 07, 2016 FEMA By SHIVAM PODDAR , CA , East Delhi

answers

354 views

Q. Gift of property situated ouside india by NRI to Person Resident In India (FEMA Compliance only) - Situation :
A person is NRI holding property outside india (Dubai) ,when he aquire such property he is also NRI that time. Now he wants to gift his property to person resident of India.

CAPITAL ACCOUNT TRANSACTION UNDER FEMA :

1- As defined in Section 2(e)â€‹ of the FEMA, "capital account transaction" means transactions 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 section 6(3)â€‹ of the FEMA. Transactions covered in section 6(3) of FEMA are as follows: -

* Transfer of immovable property outside India, other than a lease not exceeding five years by a person resident in India.

Conclusion :
1- Since in our transaction there is alteration of assets situated outside india of a person resident outside india, hence no capital, account transaction.

2- Modes of acquiring property outside India by a resident
3.1 According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, held or owned by him/ her when he/ she was resident outside India or inherited from a person resident outside India.

"3.2 A resident can acquire immovable property outside India by way of gift or inheritance from:
(a) a person referred to at 3.1 above; or
(b) a person resident in India who had acquired such property on or before July 8, 1947 and continued to be held by him with the permission of the Reserve Bank."

Conclusion :
1- Since in our transaction owner of property is Person resident outside india but as per para 3.1 says about person resident in India.
2- Since in our transaction giftee is person resident of india but para 3.1 does not provide case of gift in case of resident it only provide Inheritance case.

3- FEMA basically talks about either Property situated outside india of Person resident in india or Property situated in india of person Resident outside india.Hence our situation is not falling in both criteria and it is permisible transaction.

4- Relation between Sister Husband and sister in law is not specified under FEMA .

Question added Jan 07, 2016 FEMA By SHIVAM PODDAR , CA , East Delhi

answers

420 views

Q. FEMA (Gift By NRI to His sister in law who is resident of india of property sitated in india. - A person is NRI holding property outside india (Dubai) ,when he aquire such property he is also NRI that time. Now he wants to gift his property to person resident of India.
CAPITAL ACCOUNT TRANSACTION UNDER FEMA :

1- As defined in Section 2(e)â€‹ of the FEMA, "capital account transaction" means transactions 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 section 6(3)â€‹ of the FEMA. Transactions covered in section 6(3) of FEMA are as follows: -

* Transfer of immovable property outside India, other than a lease not exceeding five years by a person resident in India.

Conclusion :
1- Since in our transaction there is alteration of assets situated outside india of a person resident outside india, hence no capital, account transaction.

2- Modes of acquiring property outside India by a resident
3.1 According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, held or owned by him/ her when he/ she was resident outside India or inherited from a person resident outside India.

"3.2 A resident can acquire immovable property outside India by way of gift or inheritance from:
(a) a person referred to at 3.1 above; or
(b) a person resident in India who had acquired such property on or before July 8, 1947 and continued to be held by him with the permission of the Reserve Bank."

Conclusion :
1- Since in our transaction owner of property is Person resident outside india but as per para 3.1 says about person resident in India.
2- Since in our transaction giftee is person resident of india but para 3.1 does not provide case of gift in case of resident it only provide Inheritance case.

3- FEMA basically talks about either Property situated outside india of Person resident in india or Property situated in india of person Resident outside india.Hence our situation is not falling in both criteria and it is permisible transaction.

4- Relation between Sister Husband and sister in law is not specified under FEMA .

Question added Nov 16, 2015 FEMA By mandeep singh

answers

429 views

Q. FDI in retail sector (ie. in a ecommerce compay in india) - Dear sir,
I am working in a company that wants to expand its business and want to start a new e commerce company which will start sale through online portal at amazon,flipkart etc.
such indian company can have foreign money from USA as USA investors are ready to invest $1,00,000 intially (at angel round) and $50000 will be invested more by an indian individual.
after success of business indian person will not invest more but The USA person will invest $5 lakh to $10lakh and more.
now whether as per FEMA and RBI law is it possible?
what should be the business model and whehter FDI policy permit it?

Question added Apr 22, 2015 FEMA By bhaskar

answers

628 views

Q. Loan from Abroad - Hi Friends
This is regarding loan I have received from abroad in my indian Saving bank account, for the purpose of making of payment of our company which is foreign and has some fema issues, can and lend this money to our company from my account ? will be there be any RBI Fema issues need I has to pay any tax on this ?

Question added Mar 21, 2015 FEMA By ca akshay jain , CA , Indore

answers

560 views

Q. Borrow money from NRI - Whether Indian Pvt ltd co. can borrow money from NRI ?(Under FEma/ RBI)

Question added Jan 03, 2014 FEMA By vishal , CA , Aligarh

answers

396 views

Q. export - Hi Friends
Any body help me to give an answer

If a company in India purchase goods from chine and sells the goods to Russia Direct,
goods never come in India,What is the Export-import procedure & document req.?

Question added Dec 24, 2013 FEMA By sandeep lahoti , CA , Mumbai

answers

499 views

Q. form 15 CB - Hello, Is form no. 15 CB required to obtailn every time, while doing remittance to a single party every month, is a fresh form 15 CB required every time or by obtaining once we can remitt every time.

Anwered By : Vikash Kumar Jha

Question added Dec 10, 2013 FEMA By Manish Singhal , CA

answers

579 views

Q. TDS Liability on payment to germany company for repair & Packing - what is the TDS liability i.e if Nil/10%/20% on paymet to german company not having PAN. ie Euro 480 for Repair and Euro 280 for packing Charges. If DTAA Apply

Question added Sep 10, 2013 FEMA By AMS , Mumbai

answers

321 views

Q. INDIA MILLENIUM BONDS ISSUED BY SBI IN1999 - CAN I GET A NOTIFICATION COPY OF THE RBI AND MOF FOR THISBONDS WHIHC SBI ISSUED

Question added Aug 01, 2013 FEMA By Jayant Sethia , Bikaner

answers

389 views

Q. Foreign Subsidiary - Before the incorporation of a subsidiary of a foreign company in india, the pre-operative/pre-incorporation expenses were met by foreign collaboration and were paid directly to the third parties without normal bankig channels, which was not allowed by RBI and FEMA. After this equity shares were issued against pre-operative expenses borne by the foreign collaborator without any prior approval.
What steps can be taken to get Post facto approval for issuance of equity shares against pre-operative expenses borne by the foreign collaborator. The company is engaged in the business of manufacturing locomotives and their parts.
Please Help..!!

Question added Jul 04, 2013 FEMA By Sumit Goyal , CA , Patiala

answers

290 views

Q. money laundering - how to apply anti money laundering license

Question added Jul 03, 2013 FEMA By bikash

answers

362 views

Q. Share transfer - As our company is a section 25 company. We are going to transfer the shares of the company to foreign company for making its holding company. I just wanted to know that do we require any approval from department of industrial policy and promotion in this regard. And also after transfer of shares if the Holding company transfer any fund to its subsidiary company, in which route, foreign company can invest in India( ie. Direct route or Government route). Our company's operation is to carry research related work for polluted environment.

Question added Jun 19, 2013 FEMA By archana jha , CA , Patna

answers

249 views

Q. FCRA Annual filing - what is the procedure to file annual return for those trust which have talen prior permission

Question added Jun 14, 2013 FEMA By viren kulhari , CA , Jaipur

answers

229 views

Q. FOREIGN INVESTMENT IN MULTI BRAND RETAIL - DOES 4CR INVESTMENT BY AN NRI IN INR WILL BE CONSIDERED UNDER FDI RULES AND IF YES WHETHER IT IS ALLOWED IF HE IS 90% SHAREHOLDER

Experts Panelist

Rambabu Senkarasetti

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Mrattunjay

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PRIYANKA

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