fema
This query is : Resolved
20 May 2011
NR [person of indian origin] booked a flat with a property dealer & after few months she wants to cancel the booking agreement & tht builder will issue cheque in Rupees & such ch is deposited in NRO a/c
now the problem is in master circular on transfer of immovable property dated
it is stated tht
6. Refund of purchase consideration
Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (net of income tax payable thereon) may be allowed by the Authorised Dealers by way of credit to NRE/FCNR (B) account, provided the original payment was made out of NRE / FCNR (B) account of the account holder or remittance from outside India through normal banking channels and the Authorised Dealer is satisfied about the bonafides of the transaction.
but nowhere they've mentioned regarding NRO a/c
In Master Circular No. 3 /2010- 11 on NRO a/c it is stated as" legtimate dues of the account holder" as permissible credit
so if we go by the circular on NRO a/c there is no problem.But if
we go by circular on transfer of immovable property.there can be two possibilities
1. since point 6 in master circular [transfer of immovable property] odesn't mention abt nro a/c it means it's not permissible
2. main intention of law is no taxable income of nr should go out of india w/out tdstherefore by default [going by master circular on NRO a/c]it would be permissible
wht forms require to be submitted as per fema & IT act
now the problem is in master circular on transfer of immovable property dated
it is stated tht
6. Refund of purchase consideration
Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (net of income tax payable thereon) may be allowed by the Authorised Dealers by way of credit to NRE/FCNR (B) account, provided the original payment was made out of NRE / FCNR (B) account of the account holder or remittance from outside India through normal banking channels and the Authorised Dealer is satisfied about the bonafides of the transaction.
but nowhere they've mentioned regarding NRO a/c
In Master Circular No. 3 /2010- 11 on NRO a/c it is stated as" legtimate dues of the account holder" as permissible credit
so if we go by the circular on NRO a/c there is no problem.But if
we go by circular on transfer of immovable property.there can be two possibilities
1. since point 6 in master circular [transfer of immovable property] odesn't mention abt nro a/c it means it's not permissible
2. main intention of law is no taxable income of nr should go out of india w/out tdstherefore by default [going by master circular on NRO a/c]it would be permissible
wht forms require to be submitted as per fema & IT act
20 May 2011
Form 15CA and 15CB shall be required.Also the money can be transferred provided it was transferred from NRE account / FCNR account.
Anuj
0-9810106211
Anuj
0-9810106211
20 May 2011
but sir when it is specified that [ Master Circular No. 3 /2010- 11 on NRO a/c it is stated as" legtimate dues of the account holder" as permissible credit]
then why cancellation of booking proceeds cant be credited in nRO a/c
then why cancellation of booking proceeds cant be credited in nRO a/c
20 May 2011
I have not mentioned that money cannot be transferred to NRO but mentioned that money for that booking should have come from NRE account / FCNR account.
20 May 2011
sir in which provision it is written that booking of flat must be out of NRO a/c only & if is out of NREa/c/FCNR whether it is permissible????????
..
after depositing the cheque in NRO A/C he wil transfer the money to his NRE A/C.. so in that case in form 15 CA who will be responsible for submitting form 15ca remiiter or remittee
..
after depositing the cheque in NRO A/C he wil transfer the money to his NRE A/C.. so in that case in form 15 CA who will be responsible for submitting form 15ca remiiter or remittee
20 May 2011
You have mentioned the same in your submission .
Anuj
Anuj
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Reporting of STCG on Property in ITR
- Not able to file ITR
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
