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Transaction which required Prior approval of Reserve Bank - Rule 5 - FEMA Ready Reckoner - FEMAExtract Transaction which required Prior approval of Reserve Bank Prior approval of Reserve Bank. - Rule 5 of Foreign Exchange Management (Current Account Transaction) Rules 2000 Every drawal of foreign exchange for transactions included in Schedule III shall be governed as provided therein: Exception:- This rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account of the remitter. SCHEDULE III - Foreign Exchange Management (Current Account Transaction) Rules 2000 1. Facilities for individuals- 1.1 Individuals can avail of foreign exchange facility for the following purposes within the limit of USD 2,50,000 only . Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India. (i) Private visits to any country (except Nepal and Bhutan). (ii) Gift or donation. (iii) Going abroad for employment. (iv) Emigration. (v) Maintenance of close relatives abroad. (vi) Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up. (vii) Expenses in connection with medical treatment abroad. (viii) Studies abroad. (ix) Any other current account transaction: Exception The purposes mentioned at item numbers (iv), (vii) and (viii), the individual may avail of exchange facility for an amount in excess of the USD 2,50,000/- under the Liberalised Remittance Scheme (LRS) as provided in regulation 4 of - Prohibition - Foreign Exchange Management (Permissible Current Account Transaction) Rules 2000 . [ FEMA Notification 1/2000-RB, dated the 3rd May, 2000 , as amended from time to time ] if it is so required by a country of emigration, medical institute offering treatment or the university, respectively: If an individual remits any amount under the said Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 2,50,000/- (US Dollars Two Hundred and Fifty Thousand Only) by the amount so remitted: 1.2. For a person who is resident but not permanently resident in India and (a) is a citizen of a foreign State other than Pakistan; or (b) is a citizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company, may make remittance up to his net salary after deduction of taxes, contribution to provident fund and other deductions. Explanation: For the purpose of this item, a person resident in India on account of his employment or deputation of a specified duration (irrespective of length thereof) or for a specific job or assignments, the duration of which does not exceed three years, is a resident but not permanently resident: A Person other than an individual may also avail of foreign exchange facility, mutatis mutandis, within the limit prescribed under the said Liberalised Remittance Scheme for the purposes mentioned herein above. 2. Facilities for persons other than individual - The following remittances by persons other than individuals shall require prior approval of the Reserve Bank of India. Donations exceeding 1% of their foreign exchange earnings during the previous three financial years or USD 5,000,000, whichever is less, for- (a) creation of Chairs in reputed educational institutes, (b) contribution to funds (not being an investment fund) promoted by educational institutes; and (c) contribution to a technical institution or body or association in the field of activity of the donor Company. Commission to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or 5% of the inward remittance whichever is more . Note:- Calculate above limit per transaction. For any consultancy services in respect of infrastructure projects Remittances exceeding USD 10,000,000 per project and For other consultancy services procured from outside India - Remittances exceeding USD 1,000,000 per project, . Explanation:-For the purposes of this sub-paragraph, the expression infrastructure shall mean as defined in explanation to para 1(iv)(A)(a) of Schedule I of FEMA Notification 3/2000-RB, dated the May 3, 2000. Reimbursement of pre-incorporation expenses , by an entity in India by way of, Remittances exceeding 5% of investment brought into India or USD 100,000 whichever is higher, 3. Procedure The procedure for drawal or remit of any foreign exchange under this schedule shall be the same as applicable for remitting any amount under the said Liberalised Remittance Scheme.
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