Banking

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2009 Can a FIRC issued to an NRE A/C holder whose funds have come from abroad.If no please substantiate the reason. If yes is the purpose to be known from the remmitter. Please give me a detailed reply.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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15 November 2009 NO. See the point (v)

"e. Authorised dealers should issue foreign Inward Remittance Certificate (FIRC) in the prescribed form if requested by the beneficiary.

(i). If the amount received exceeds Rs.15, 000/- in value, then the FIRC should be issued on security paper. The FIRC forms should be printed on security paper. If, however, the amount received from abroad does not exceed Rs.15, 000, then the FIRC may be issued on the printed letterhead with logo of the authorized dealer instead of on the security paper.

(ii). Exporters may ask for certificates to be issued by authorised dealers for submission to the office of the Director General of Foreign Trade (DGFT). Authorised dealers may issue such certificates - after verifying all the required particulars.

(iii). Sometimes customers may ask for inward remittance certificates for submission to the Income tax Department. Authorised dealers may also comply with such requests.

(iv). Whenever exporters receive advance remittances, it is their practice to obtain FIRC for the amount so received from the bank concerned. Subsequently as and when export is made and documents are presented by the exporter, the FIRC mentioned above should be called for in original and necessary endorsement made thereon by the authorised dealer.

(v). Whenever inward remittances are received for opening of a NRE or FCNR account (or for funding these accounts) FIRCs should not be issued by authorised dealers."

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