FEMA

others 315 views 1 replies

Hi all i have a query

A foreign co has a branch office in India.The branch office has received foreign currency from the foreign co for the purpose of share capital.(The branch is going to be converted as Subsidary).Meanwhile the branch office in India had given the amount to another co outside India as loan.Is it possible under FEMA regulations or Is it a violation

 

Replies (1)

 It would be considered as a capital account transaction and for that purpose it is required to seek permission from RBI / central govt.


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