If dividend has to be paid abroad, can we use our EEFC account to remit the same, in order to avoid foreign exchange loss?
Please let me know your comments on this.
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Can dividend be paid out of EEFC account?
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No the dividend cannot be paid out of EEFC ACcount. There are certain permissible remittance from the EEFC account but dividend is not therein.
Further, there is specifically prohibition in payment of dividend by a company to which dividend balancing provisions are applicable.
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