FEMA

Hi Garima!!!

As per Section 5, Any person may sell or draw foreign exchange to or from an authorised person if such a sale or drawal is a current account transaction. However, the central government in the public interest & in consultation with RBI may impose such reasonable restrictions as may be prescribed.

Current account transaction means a transaction which is not a capital transaction & includes -

1) Payment due in connection with foreign trade, other current business, services & short term banking & credit facilities in ordinary course of business.

2) Payment due as interest on loans & as net income from Investments.

3) Remittances for living expenses of parents, spouse and children residing abroad &

4) expenses in connection with foreign travel, education and medical care of parents, spouse and children;

Paymen to foreign company for marketing & promotion is made in connetion with business. Hence it falls under the current account transactions. Hence it is freely permissible under FEMA.

NOTE: The Answer is as per my understanding of the section. Please correct me if i am wrong.

Regards

Rahul Gupta

Hi !!

Are you talking about Advertisement in foreign print media for the purpose other than promotion of tourism etc. I think its not related to your question.

Further i dint find any provision relating to this in current account transaction rules. Can you please draw my attention towards that point?

Regards

Rahul Gupta