Payments under fema violation.

This query is : Resolved

SHELLY BHARDAWAJ (Querist)
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05 February 2015 I have one client Named X,he is a salaried individual & holds 2 Credit cards & his wife Y(Proprietor),is a Business women dealing in Imitation jewellery mainly exports with her current account in HSBC Bank where she got all the receipts of export sales.

ISSUE IS:-

She pays a rent of $500 per month through her husband's credit card directly for the showroom fee(rent) and she use to carry her husband's credit card while visiting USA for some Business exhibitions & Trade shows including the hotel bills,food expenses and other miscellaneous expenditure.

NOW THE QUESTION IS:-

1.Whether she can pay these above mentioned amounts through credit card without involving her Bank's current account?
2.Is there any limit under FEMA or RBI,which they might be violating?

Notes.
Her husband has no involvement in her business.
The expenses incurred by her through her husband's credit card are shown in her balance sheet.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 February 2015 All Export sales received in current ac in India is main compliance of FEMA.
Incurring business expenditure through husband's credit card no problem.
See the link for RBI rules on limit of FE expenses.
http://www.ingvysyabank.com/pdf%27s/RBI%20Rules.pdf

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