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TMI BlogOpening, holding and maintaining a Foreign Currency Account outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... reunder. (2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located. (3) A shipping or airline company incorporated in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of undertaking transactions in the ordinary course of its business. (4) Life Insurance Corporation of India or General Insurance Corporation of India and its subsidiaries may open, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e branch or office or representative (w.e.f. 4th Dec.2006) (c). the overseas branch/office/representative shall not enter in any contract or agreement in contravention of the Act, Rules or Regulations made thereunder; (d) the account so opened, held or maintained shall be closed, (a) if the overseas branch./office is not set up within six months of opening the account, or (b) within one month of closure of the overseas branch/office, or (c) where no representative is posted for six months, and the balance held in the account shall be repatriated to India: Provided further that the restriction contained in clause (b) of the first proviso shall not apply in a case where - (a) the remittances to the account maintained under this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been duly complied with. (6) A person resident in India who has gone abroad for studies or who is on a visit to a foreign country may open, hold and maintain a Foreign Currency Account with a bank outside India during his stay outside India, provided that on his return to India, the balance in the account is repatriated to India : Provided that short visits to India by a person who has gone abroad for studies, before completion of his studies, shall not be treated as his return to India. (7) A person resident in India who has gone out of India to participate in an exhibition/ trade fair outside India may open, hold and maintain a Foreign Currency Account with a bank outside India for crediting the sale proceeds of goods on displ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity Partnership Act, 2008] 6[(9) An Indian party may open, hold and maintain Foreign Currency Account (FCA) abroad for the purpose of overseas direct investments subject to the following terms and conditions: (i) The Indian party is eligible for overseas direct investments in terms of Regulation 6 or Regulation 7, as the case may be, of Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (notified in Notification No. FEMA 120/RB-2004 dated July 7, 2004) as amended from time to time. (ii) The host country regulations stipulate that the investment into the country is required to be routed through a designated account. (iii) FCA shall be opened, held and maintained as per the regulation of the host ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign company may open, hold and maintain a foreign currency account with a bank outside India and received the salary payable to him for the services rendered to the office/branch/subsidiary/joint venture in India of such foreign company, by credit to such account; Provided that, i. the amount to be credited to such account shall not exceed 75 per cent of the salary accrued to or received by such person from the foreign company; ii. the remaining salary shall be paid in rupees in India; iii. Income tax chargeable under the Income Tax Act 1961 is paid on the entire salary as accrued in India." Further Substituted vide Notification No. FEMA 199/2009-RB, dated 30/09/2009, before it was read as:- "[(8) (i) A citizen of a foreign Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a foreign State resident in India being an employee of a foreign company or a citizen of India employed by a foreign company outside India and in either case on deputation' has been substituted vide Notification No. 089/2003 dated 29/4/2003 5. Has been substituted vide Notification No. 154/2007 dated 7/6/2007 (w.e.f. 4/12/2006), before it was read as, "i.10 per cent of the average annual sales/income or turnover during last two accounting years of the Indian entity, where the remittances are made to meet initial expenses of the branch or office or representative, and ii. 5 per cent of such average annual sales/income or turnover where the remittances are made to meet recurring expenses of the branch or office or representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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