It & fema rules

581 views

Save Share

rahul

Finance Manager

56 Points Posted on 17 April 2014

We are an importing company based in India. We have a branch office in Singapore. All our purchases are made from Indian head office. But all sales invoices are made from our singapore branch. So all the payments from our debtors gets collected in Singapore. we have to make payments to our creditors from Indian Head office.

I want to know whether we can transfer the funds collected from our debtos in Singapore to our Indian Head office to enable us to make payemnt to our creditos. Is this a violation according to IT or FEMA rules? Please advice.

Replies (4)

CA Saroj Kumar

Keen to learn something new every moment

2160 Points Posted on 17 April 2014

I think there is no such voilation either in It and FEMA As well but u have to ensure that TAX implication in India as well as In Singapore. Altough its is daily business transaction almost for all the companies having branches outside india....So dont worry about the Violation....

CA Saroj Kumar

Keen to learn something new every moment

2160 Points Posted on 17 April 2014

Hovever u might violet the provisions of the FEMA ,...if u dont get back the foreign relised in Sigapore ...Bcs as per FEma section 2(y) and 8 - it required that when a Person Resident of India has due any amount in foreign currency he shall required to ge Repatriate the foreign curreny to india.....