05 June 2012
BACKGROUND One of our client is a Multi model transport company having agents abroad, they do remittance to their agents for services rendered outside india through A2 remittance. While making the A2 remittance they deduct the amount receivable from their agents for the services done by the client in india to the agents and remit the balance.
QUERY Whether under FEMA setting off of receivable against Payable is allowed. do we need to get any prior approval from RBI / Govt.
CAclubindia
