Foreign remittance

 

BACKGROUND
One of our client is a Multi model transport company having agents abroad, they do remittance to their agents for services rendered outside india through A2 remittance.  While making the  A2 remittance they deduct the amount receivable from their agents for the services done by the client in india to the agents and remit the balance.
 
QUERY
Whether under FEMA setting off of receivable against Payable is allowed. do we need to get any prior approval from RBI / Govt. 
Replies (3)

Hi,

 

As per my understanding, there is no general approval for such 'Netting off' except for SEZ units. Therefore, a specific approval would need to be obtained from RBI for such 'Netting off'.

 

Below is the link for the latest Master Circular issued by RBI in this regard:

 

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/10ME290611FL.pdf

 

Cheers

 

Hi,

 

Not allowed 'Netting off' except for SEZ units. Below link will provide updated Master Circular of RBI.

 

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/10ME290611FL.pdf

 

Cheers

Hi,

 

Not allowed 'Netting off' except for SEZ units. Below link will provide updated Master Circular of RBI.

 

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/10ME290611FL.pdf

 

Cheers

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details