Pls tell me, what are the rules and regulations in fema regarding,
1. A company purchased a machinery from abroad on loan and showing the foreign party as creditors since last two years. What is the terms n conditins in FEMA regarding this. Can repayment be made in lump sum?
2. The company is an agent of foreign company and receives commission on the indian clients procured. Indian clients pay to the indian company advances etc to procure machinery from abroad. The indian company takes its commission from the clients money and send the rest of the money abroad. Is this kind of setoff is allowed? Or should the company send all the money abroad or receive the commission from foreign company in return. I am totally confused. Pls let me know the rules and regulations.
Pls tell me its urgent.
CAclubindia
