ECB- very urgent !

883 views 3 replies

Hello Members

Anyone please throw some light on the subject. A pvt limited Company (under Power sector) has accepted inward remittances from its holding company outside India (Foreign entity) , OTHER THAN EQUITY. Now i understand , this gets covered under ECB, Please enlighten on the following ;

1. under which route : automatic or approval ?

2. Compliances in this respect. ?

Thanks in advance ...neeta

Replies (3)
I am attaching herewith the Master Circular's Copy regarding ECB; U need to check whether ur company fall under the Automatic Route or Approval Route. If any one the condition of Automatic Route is not satisfied it will fall under Aproval Route. For Automatic Route:- 1. File F-83 with AD and RBI for allottment of Loan Registration Number (LRN) 2. After receiving LRN, u can draw draw down the loan. 3. Regular compliance would be File ECB-2 monthly within seven working days from the close of month to which it relates. For Approval Route:- 1. File F-ECB for seeking RBI approval. 2. After obtaining the approval, u can draw down the loan amount. 3. Regular compliance would be File ECB-2 monthly within seven working days from the close of month to which it relates. Regards,
Thank you for the reply. Please clarify further, does ECB guidelines gets attracted if we take the remittance NOT AS A LOAN. But as amount that'll be reimbursed, without any agreement.

Upto my understanding;

 

If you are in receipt of fund from any one you will have to book the same, under which head you will book that. Irrespective of the rate of interest, it should be treated as ECB or trade Credit as the case may be.

 

Others views solicited.

 

Regards,

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details