Hemali Shanghvi (Owner) (136 Points)
24 August 2011Hi,
My client is an NRI, but has now settled in India for the past two years. She has started her small firm serving both Indian and USA clients. She has not opened any current account in her firms names yet. She has already worked on some projects. she is expected to receive some funds from her USA client. Can she receive these funds in her NRE account? Should she open any other type of bank account for her USA clients?
Thanks
Hemali
CS Bijoy
(Expert)
(6394 Points)
Replied 24 August 2011
She is receiving the fund on behalf of the service provided by the firm so it will be better to open a current account to receive the fund .
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 08 September 2011
| Originally posted by : Hemali Shanghvi | ||
 |
Hi, My client is an NRI, but has now settled in India for the past two years. She has started her small firm serving both Indian and USA clients. She has not opened any current account in her firms names yet. She has already worked on some projects. she is expected to receive some funds from her USA client. Can she receive these funds in her NRE account? Should she open any other type of bank account for her USA clients? Thanks Hemali |
 |
As per FEMA, since NRI has come back and sttled in India for 2 years, then she becomes a resident in India as per FEMA.
The ex-NRI lady should now definitely open a current or saving account depending on her requirement in India and should not receive payment in the NRE account.
Anuj
+91-9810106211
femaquery @ gmail.com
CAclubindia
