03 January 2014
i have a evault online account where i upload funds from my credit cards in usd and when i withdraw money from my that evalit account i got money back in my bank account as foreign inward remmitences. and some times i have lend money to my friends which i get back as money in my evlet account which again came back in my bank account As foreign reemmitences question 1. i didnt earn a single penny from such trnsactions its all my money only lended or uploaded in evalut and coming back to my account as foreign remmitance the amount of such transaction is 10 lac around in financial year since i m working coporate where i get form 16 from employer is this money i have to show sepratly and pay taxes?. question 2 if yes why as its my money only revolving and not generating a new income if it is taxed it mean double tax on same income ? your response will be much appriciated
06 January 2014
Pl let me know your residential status of India. Which type of account you hold with bank in India ? What does firc mentions source and purpose of money?
06 January 2014
HI I am India resident only . I am having salary account with Bank in India.
I have Uploaded that money in my Evalet account using my credit card and get refund in my Bank account as foreign remmitence as the banking channel the site use to send the money is from a foreign bank
06 January 2014
Ewallet is for transactions in INR. Ideally the credit should not come as forex. But since you are receiving FIRC, it implies that money is coming from foreign bank.
Foreign Exchange Management Act will not permit such transaction as it would amount to contravention. However this concept is new, you should query with Ewallet people as to why you are receiving FIRC when it is not a foreign transaction.
06 January 2014
Hi There are many sites like ( Skrill , Moneybooker, Neteller) Who offer evalut account where you can fund your account using Credit Card the amount is getting uploaded as USD and you can use your this emoney for any purposes or if you want your money back they will refund in your Saving Accounts. Since all these are foreign sites the channel they used to fund back money is via their UK Bank that is why it is reflected as Foreign Inward remmitence. My question is all these are reverse transaction like of i fund those evalue account and then get back from my that account is their any tax implication on same
If it is then i think it is double tax on same amount as i only revolve money nothign is coming a new
14 January 2014
Dear Mr Singh, There is no tax implication on the same. However use of credit card or emoney is only permitted for purchase of tangible/intangibles. You cannot use the source for funding/giving loan. This is in violation of Foreign Exchange Regulations of the country. regards..
CAclubindia
