FEMA, Current Account Transaction.

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in)   (218 Points)

17 May 2011  

Dear Colleages,

As per Rule 3 of the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2001, a person can not draw foreign exchange for any of the transaction specified in the Schedule I, one of which is

            “Payment of commission on exports made towards equity investment in joint ventures/wholly owned subsidiaries abroad of Indian companies.”

 

Can any one explain the above transaction with example, please…..

 

Regards,

Sridharan.

Salem.