Fema violation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 August 2013
A private company(incorporated in 2011) is dealing in fancy jewellery in india having 2 directors - NRI husband and his Resident wife
Most of the jewellery is purchased from china and gulf
The director (NRI in dubai) often pays for this jewellery directly from his own bank account in the gulf
These purchases are accounted in the companys books by debiting puchases and crediting Directors loan account
Is there any violation of FEMA/ RBI regulations in this?
Loan outstanding is 29 lakhs which consist of pyment for purchases accounted and also transfer from Directors NRE bank account to company bank account for meeting expenses
is there any violation in making payment by the director for the companys purchases?
Is there any maximum period for such loan?
Are funds transferred from NRI directors NRE bank account to company bank account to meet expense in order or is there any FEMA violation in ?
Most of the jewellery is purchased from china and gulf
The director (NRI in dubai) often pays for this jewellery directly from his own bank account in the gulf
These purchases are accounted in the companys books by debiting puchases and crediting Directors loan account
Is there any violation of FEMA/ RBI regulations in this?
Loan outstanding is 29 lakhs which consist of pyment for purchases accounted and also transfer from Directors NRE bank account to company bank account for meeting expenses
is there any violation in making payment by the director for the companys purchases?
Is there any maximum period for such loan?
Are funds transferred from NRI directors NRE bank account to company bank account to meet expense in order or is there any FEMA violation in ?
Ajay Mishra
(Expert)
19 August 2013
hi
Please check, is their any board approval for making this type of entry in company.
Generally, it is not a part of company business or not it is investment, so as per my knowledge it will not be violation of company.
Please check, is their any board approval for making this type of entry in company.
Generally, it is not a part of company business or not it is investment, so as per my knowledge it will not be violation of company.
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