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.
KrishnaPrasad (FM) (24 Points)
19 June 2009If 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.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 19 June 2009
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.
CAclubindia
