Fema

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2015 Our Company has received from US , Rs 50 lkhs advance from a client, who is an NRI individual, for supply of Digital Content.

The Contract has been cancelled. To avoid RBI/FEMA TECHNICALITIES, He wants the amount to be returned in rupees , in India, to his Indian account.

Can we do it or will it be violation of FEMA rules. Will it amount to money laundering or Unauthorised FC trading.

Pl advice. Thanking you in anticipation

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 February 2015 If both the receipts and payments are done through banking channel no problem it will not amount to money laundering.

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2015 Sir,
Thanks for the response. The transaction will not amount to money laundering as kindly suggested by you.
Will the transaction violate FEMA rules, do we need RBI consent.

regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 February 2015 You are going to pay the money in Rupees hence no FEMA violation. RBI consent also not required.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now