20 February 2017
One of my client need to transfer money from india to outside the country for (service)business purpose. So, the money worth would be around Rs. 18.00 lacs in a quarter. So, what are the formalities and legal steps him should follow. please guide us, where there he should file 15CA or 15 CB or any income tax procedure should take / he need to get any permission from income tax department. Thanks in Advance,
20 February 2017
15CA and 15CB not required. No permission from tax dept required. See the link for RBI formalities. https://www.rbi.org.in/Scripts/FAQView.aspx?Id=32
But, we are transferring money to them against their invoice value partially / fully. So, what are all steps need to be fulfill in invoice format and same as fund transfer.
23 February 2017
Produce the agreement copy and invoice to your bankers they will guide you. Under the Automatic Route, an Indian Party does not require any prior approval from the Reserve Bank for making overseas direct investments in a JV/WOS abroad. The Indian Party should approach an Authorized Dealer Category – I bank with an application in Form ODI and the prescribed enclosures / documents for effecting the remittances towards such investments. However, in case of investment in the financial services sector, prior approval is required from the regulatory authority concerned, both in India and abroad. Form ODI is available as an Annex to the Master Direction titled ‘Master Direction on Reporting under Foreign Exchange Management Act’. Proposals not covered by the conditions under the automatic route require prior approval of the Reserve Bank for which a specific application in Form ODI with the documents prescribed therein is required to be made through the Authorized Dealer Category – I banks.
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