Payment of Guarantee Fee - overseas, FEMA

[Pradeep Kaushik]

Dear All,   We are 100% Subsidery of a Korean Company.   We are proceeding our ECB activities under Automatic Route.   In this regards, please let us know:   1. Can our parent Company in Korea, make Guarantee for us to avail the ECB from Exim Bank Korea. 2. Can we pay the Gurantee fee to our parent Company, will be a part of "All in Cost". 3. If any balance remains in our ECB funds after making all our capex, what will be the use for the Balance Funds in ECB. 4. Is Guarantee fee payment to Foreing companies, is prohibited under FEMA    Please provide us the relevant clause in FEMA/ECB Master Circular in this regard.   Your early reply will be highly obliged.   Best Regards Pradeep kaushik

Posts / Replies

[Pradeep Khatri]

Sorry, I could not find any reply to your queries.  Please check with your Authorised Dealer or with RBI.