About Remittance
This query is : Resolved
Amit Deokule
(Querist)
05 November 2008
Dear All,
If we do remittance to some country abroad where we are forming a company and and for the company formation purpose we are sending fees to our consultant in that country. If we show this transaction as loan in our system in India and later on we will recover the loan from that company in that country.
Is it a right treatment given in accoun t records?
If we do remittance to some country abroad where we are forming a company and and for the company formation purpose we are sending fees to our consultant in that country. If we show this transaction as loan in our system in India and later on we will recover the loan from that company in that country.
Is it a right treatment given in accoun t records?
S.Srinivasaraghavan
(Expert)
06 November 2008
If you have not yet formed the company but for formation purposes you are remitting money after observing formalities of FEMA, You can treat it as advance against allotment of share capital in that new company
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