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Notes: A Stepwise Guidebook on Completing Fema Form 119 25 2 Online

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The Definite Guide to Fema Form 119 25 2

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Must-knows concerningFema Form 119 25 2

and before we go to the case studies.have also summarized the provisions of.the law and how the structure of the FMA.is and how these fema are trying to.regulate the transactions of the.residents as well as dean own residence.[Music].can you please go to the next slide.please so in last 10 years even notice.that most of the provisions from section.1 to 49 have been in fact and they were.amended through the various.notifications of the capital account.transactions and the current account.rules what we find only one change in so.many year is the change which is made.out in 2015 by virtue of amending.section 6 2 6 3 and 37 and 46 whereby.two things took place one is the power.to regulate the capital account.transactions was given away to send the.government and the second change was.made introduction of section 37 a.whereby criminal powers were given to.the Enforcement Directorate that if you.found in contravening any of the.provision in relation to the foreign.currency foreign properties and foreign.securities are owned in contravention of.being act then you may be punished.including the imprisonment with this.background let me go to the next slides.can you please take a little slide.number 25 carat can you mute all the.other participants because we could hear.some prayer in the background by default.they are muted only as you as you all.know the there are four important.definitions and the Pema which are.important for the purpose of.understanding the transaction of Emma.the the first two definitions are the.capital account transaction and my.current account transaction in the next.two definitions are the residences.status being a resident under FEMA over.non-resident and of Emma why these four.definitions are important just to recap.the objective of the FEMA provision and.the law that we is it is regulating the.transaction of resident as well as non.resident in India as well as Australia.largely you will notice that.perspectively you will find that the law.is designed for non resident resident to.control or to manage me foreign.exchanges in India however you will find.that the large portion of me that is.revolving around the capital government.transaction and current account.transaction whereas non-residents effect.affected only for the purpose of capital.count.action and residents are affected by.current account transaction as well as a.capital compensation and therefore it is.effectively residents largely as.compared to the non residents therefore.therefore two transactions capital.account transaction current account.transaction we all know how they are.defined that the current account.transactions are one which are not a.capital account transactions and capital.account transaction are such whereby.assets of the residence are altered.outside India as well as liabilities of.the residents are all turnouts India or.the assets and liabilities including.contingent liabilities of non-residents.are altered in India so if such an.alteration of the assets or liabilities.takes place then it is called a capital.con connection and if such changes do.not take place then they are called as.each current account transactions so.when I when I when I individual client.or a company approaches in day-to-day.practice they come out with the various.questions so what will happen on a day.to day basis that either non-resident or.a resident will approach you for their.transactions now what are those.transactions as you can see in this.slide that person resident in India that.is resident can either come up with.current account transactions issues or a.capital account transaction issues and.the non-resident will come out most.probably for a capital own transaction.to be considered in India because if.there is a transaction to be carried out.outside India probably you will not.approach your the other two important.three and three more aspects which are.arising out of day-to-day practice it.once resident or non-resident approaches.you then they will talk about I think.whether the two.very important aspect is that how this.transactions are to be carried out is.referred in section 3 that this.transaction are to be carried out only.in the manner in which it is specified.in section 3 that most of the.transaction are to be routed through the.authorized dealer this is provided.because there is no other mechanism for.the Reserve Bank of India to record and.understand this transaction in in a.manner after the transaction is carried.out or to find out a suspicious.transaction after the transaction is.carried out unless it is carried out to.a authorized dealer.so therefore Section 3 we may popularly.call it as a hawala transaction but I.would try to understand that it is a.mechanism through which the transactions.are to be killed out there to three.matters one is the section 3 of the EMA.and the 2 other exceptions are the.liberalized emitted scheme and the.remittance q.y there are exceptions to.the rule because was to the capital.account relations are specified in the.manner in which it is required to be.done in the notification itself however.if the conditions of the notifications.are restrictive then those restrictive.conditions will normally not apply.another liberal lysimeter scheme or.under the remittance scheme for the no 1.resistant so these are the two important.aspect which we must keep in mind when.we read the notification with the.restrictive provisions of this.particular notification now coming to.the the next slide that how next slide.please.and how we will approach the problems of.resident as well as not understand we.won't do I respond to the questions of.resident non-resident we will I you will.understand that transaction the.transaction is current account.transaction then we will resolve it to a.regulation relating to curve the.contradiction and if the transactions.are capital on transaction that could be.either government route or the Izzo bank.route so in those cases we will have to.find solution from the RBA route or the.government route and that just solution.we have to come to conclusion so we we.go to the next slides on the case study.number one on slide number 35 35 this is.the case study where mr. Lewis was an.Indian citizen is required to pursue his.deputation to UK he is a managing.director on a chief executive of an.Indian company.an Indian company has a business on a.global basis therefore in companies.considering whether mr. Lewis can be.relocated to the UK we are told that mr..Lewis is likely to be occupied 400 days.in UK and about 120 to 180 days in India.and rest of the time he may be required.to be.outside UK as well as India we're also.told that mr. Lewis has income more than.50 links in India and he want to migrate.with his family and also he is looking.for making investment outside India and.his properties and other business his.pursue this opportunity which has been.offered to him by his company so so mr..Liu says approached me we see a steady.circle to understand as to how he can.consider this opportunity of migration.to UK under the provisions of the fema.as well as the provision of the tax law.can you kill so therefore in order to.understand the provisions of the law we.all know that there are two types of.residential status one under the FEMA.and one under the income tax law.now when you when you think that mr..Lewis has to be relocated to outside.India and into an UK then FEMA does.permit you for the purpose of deputation.that it be treated to the employment.abroad and from the time he takes up his.employment he may be regarded as a.non-resident of Emma now coming to the.next session we are all aware that mr..Lewis if is able to consider physical.stay in India in accordance with 1666.then he could be considered as resident.or non-resident depending on the.circumstances and the employment.conditions envy texts tech status or.Selenia we are mainly concerned with the.explanation be to section 6 1 which is.now introduced and it says that.particularly in the later part of the.explanation that if he stays in India.more than 119 days in a year anyways.income is exceeding 50 lakhs.it'll still be regarded as a resident in.India also the explanation 1a says that.if he is not a resident ex resident of.any other country then also he will be.regarded as resident in India so so mr..Lewis is concerned about this particular.two provisions whereby if he stays 100.days in India a hundred days in UK 120.240 days in India and rest of the time.outside he to countries then.he would be regarded as resident in.India of course the letter provisions.checks section 6 6 C 6 C 6 6 which is.also amended it says that if there are.individuals citizen of India well I know.what resident under the explanation be.or under explanation 1a to section 6 1.then in such a case both will be treated.as resident but not ordinary resident.can we go to next slide please.there is a slide 42 please go to 42 yes.see I have put up this provision which.are newly inserted in us in the.definition of resident of section 6 that.the main difficulty for mr. Lewis is the.in the explanation be to section 6 1.whereby his income is more than 50 lakhs.in India and he stays also more than.hundred 19 days in India which makes him.or not audience is a friend in India.also also if he is not likely to be a.text resident in UK he could be regarded.as again resident under the explanation.1a and finally he could therefore be.written in a while he what we can advise.as the right member of the study circle.was the proposition probably when when a.my stay exceeds hundred ninety days in.India for mr. Lewis.there are situations where by virtue of.my stay of 120 days 100 days in UK mr..Lewis wood could be regarded as resident.of UK under certain circumstances of.owning a dwelling house so could be.advise mr. Lewis could be advice that.yes if you are taking up an employment.in UK and if you are regarded as Texas.in the UK probably probably one one can.advise as to the treaty provisions for.mr. Lewis comes to his rescue.what are those treaty provisions that we.have in the UK tax treaties whereby mr..Lewis can access the indicate xtt for.the purpose of tiebreaker test of.article 4 what is the tiebreaker test as.you all know that if mr. Lewis can be.regarded as resident of UK and he's also.a resident of India under this.explanation be then in such a case such.a case.tiebreaker tests will be in favour of.mr. Lewis and in favor of UK because he.is my knitting with his families he is.likely to make large investments outside.India and his job is not up for a fixed.period and therefore it is possible that.he will resolve the text treaty issues.in favor of the UK and therefore the.hundred twenty nineteen days test or.staying more than 120 days in India may.not apply to him.now let us try because for the same.reason even 6:1 even even explanation.when a we do not apply because now he is.a resident of UK and therefore.expression1 even also not apply it can.be further argued.if this particular contention has some.drawback.then can further be argued that since.I'm a resident of UK definitely.explenation when it does not apply and.also exploration be to section six one.also does not apply because the resident.of both the country probably while.accessing the tax treaty can possibly.argue that the tiebreaker test requires.me to consider the definition of resist.Attis of both the text law those.definitions which are based out of the.criterion of domicile or a stay or such.similar criterion but it should not.consider any criterion which are based.on the location of income or a source of.income or a capital in that particular.domestic state can we then argue saying.that since definition particularly.explanation be an explanation one aim.talks about the residential status.purely purely based on the income.exceeding 50 lakhs and therefore and.therefore both the portion that.explanation be little part of exceeding.15 days and stay between hundred and.twenty and eighty one days and six one a.which is purely based on the income of.course I have a residency status in UK.but purely on income let me say that we.will ignore for the purpose of text et.that definition which treats me a.resident of the country purely based on.income so possibly that could also be an.argument in favor of mr. Lewis if you.want to consider that he should be.liable to tax.in UK on a worldwide basis on so coming.to the next slide so therefore what will.happen let us say if both this argument.do not work in Filip mr. Lewis and he.staggered it is you know are in India.probably if he's been treated as an or.under Section six six of the Income Tax.Act then we can advise him that yes the.scope of income under Section five two.for non-resident is same as that of.residents as well as certain income.earned outside India accrued outside.India from the business controlling or.from the profession set up in India so.that's only the dark side of the status.of Anwar also I would like to think that.if he were to turn to be an hour and.this arguments do not work then probably.most of the provisions which are.applicable to non-resident.in the idea will not be applicable to.him which will take away number of the.more of concessional tax treatment.income as resident and not as an onus.and for example we income from dividend.which would have entitle him India UK.tax treaty and the dividend income could.have been taxed at lower than thirty.percent rate then no various provisions.of the law which are presently obeys his.text will not apply to him and income.from fees for technical services other.and other items of income like interest.which is also text a concessional rate.of ten and twenty will also not.I knew him this is a darker side rather.than the scope of income which is.included in fact - according to me so.with that I think we can definitely.advise mrs. mr. Lewis so as to say that.whether you can take employment in UK or.in any other jurisdiction which is a.tech 7 also lastly I would like to touch.upon that exempt income which are based.on purely the residential status under.FEMA I will not make any difference if.mr. Lewis were to turn to an oil so with.that last point so we can say mr. Lewis.with little bit of sanitization that yes.it is possible for you to consider the.residency status in UK and probably.avoid taking employment in anywhere else.where you are not able to prove your.extras in status either in Jersey or in.Excel and with that background I can we.can easily or safely advise him to be a.non-resident under FEMA as well as he.can consider this advice to relocate.himself to UK and be ex resident in UK.and pay taxes in UK on the basis of the.criteria of 91 days stay in the dwelling.house or any other criteria under the.domestic law of the UK by considering.the background of the text ET the the.article for tobacco test and the.ignorance of the income based condition.under the tiebreaker test or in any case.since either text resident of UK there.should not be any difficulties in.arriving at that conclusion can we go to.case study to peace in any questions on.case 21 we can take it up now for few.minutes.but saying that under the sea we are.told that the monster Louis is purely.looking after the global operation of.the multinational company from UK or.yeah when when he is looking after the.global operations from India then in.that case he will be requiring to travel.abroad in any case for more than 160 70.days two days pass and no amount no no.piece of work for mr. Louis which is.purely dedicated to the local operation.in India similarly if we were to be.employed by the UK operation or UK.company and he is required to look up to.the cooperation then he will be required.to travel to India for the global.operation as well as to other countries.and therefore no part of the employment.is treated as purely a local employment.so therefore therefore section 9 1.section 9 which talks about services of.non-resident in India is taxable only if.services are rendered in India right and.there is a long history of what is this.rendered in India so you know rendering.any services in India.therefore the deeming provision will not.be attracted also in the scope of income.income he is only if he is non-resident.or even even you know his Indian income.will be definitely taxable for all does.it answer your question.hello hello am i audible does this.answer your question yes to Samara is.what I understood is only a Larry with.respect to is Indians in India and the.salary which is related to these other.than India operations we can say it is.not taxable in India because under.Section 9 1 it is not considered as also.also if one were to consider is stay in.India for more than 120 days and we all.understand that he stay in India is less.than 182 days right we all understand.that right for the pack now yes now even.if if one were to try that since he is.rendering some services in India his.services should be taxable under 939.right that's what your proposition is.then you know there is a India you can.article 16 on dependent personal test.even if a stays more than 120 days but.less than 183 days this salary will.still not be taxable in India because of.the India UK tax treaty article 16 the.independent personal test is that clear.to you for services rendered in India.and from India in this say that this.part of salaries claimed as a deduction.by the Indian subsidiary so one of the.condition of no person the the condition.is that the the there must be a.permanent establish that the services.salary must be borne by the permanent.establishment in India of the foreign.company which is not the case here.therefore these arguments may not stand.okay yeah so there are received by him.in the UK yeah I will be taxable in UK.according to me any other view we can.allow also can was my body exposure if.that service is sitting in India for the.UK company can we go to next case study.case study - this is a very simple case.study but what I try to cover here is.that when we travel abroad for either.prism or for a business purposes then we.are I know stuck with the idea that yes.$250,000 is the only limit which we are.able to utilize the idea here is to you.know give a laundry list of the various.provisions of the law.pema that from where you can get a.foreign exchange or the foreign currency.from the provisions of the different.notifications under the Pema so we all.aware of the liberalize immittance.scheme and the current account.transactions added one two and three and.mainly travel effect travel is concerned.we have covered by the sheduled three of.the current account transactions now and.then therefore if we have consumed two.hundred fifty thousand dollars scheme.for any other purposes under the.liberalized Everton scheme then your.travel allowances will be cut in to that.level right so but that is not the case.according to the law this is what I want.it to say that what are those different.allowances which are possible one is.allowances for private resident foreign.currency in we.in the limit of 250 thousand then.allowance for debit card debit to the.credit card of the person London in.India see up to the credit card limit.you're allowed irrespective of the.elemental scheme then if you have RFC.account resident foreign currency.account where money is lying which are.purely originated from the foreign.exchange resources of the individuals.which he made or earned outside India.and brought into India and ahrefs.account then there is another.possibility of RFC domestic account that.also can be utilized and one can also.during the time of going out going to.travel can take Indian rupees outside.India also one can make payment to.Indian tour operator in rupees Indian.rupees also one can take phosphate.ability abroad without attracting the.provisional Hema any if you are a.business tool then of course your.company can consider we consider the.travel allowances which where the.250,000 limit does not apply to you and.also if you are in your own business and.if you have a branch abroad and if you.are going for the purpose of the.businesses of the branch which is.outside India then in such a case you.can still consider a mentor for expenses.by the branch of Indian operations can.we go to next slide please.you.you.can you go to slide number 52 now.because from 46 to 52.I am only explaining what is the current.account transaction hi this credit card.thing even ability is issued by Indian.Bank it is fine or it is international.currency card I am there is some see the.current account transaction on so covers.the credit card issued by the.international credit card agency to.non-resident in those cases it says that.the non-resident NRO or nav account must.be debited with his international credit.card so I am NOT discussing that.particular xx aspect for the purpose of.be resident Indian okay but here you.mean to say that if I'm using my credit.card which is an Indian rupee credit.card that limit will guess then the tool.f it is not covered in the liberalized.medicine.okay so that is in addition to $250 if.you see the rule 6 7 after rule 5 you.know the schedule 3 then that will throw.light on the subject.okay oh that one I explained inside.slide 46 to 52 there is a limit of 25000.rupees for for the countries other than.Nepal and Bhutan and for Nepal and.Bhutan there is no limit except the.denominations of the notes is a limit 3.or 4 people and also some to than 5.people 25 X can be carried yeah see in.case of her Indian traveler the cost of.then slight stir is everything will be.subsumed under to like 50,000 it is not.over and about to like 50,000 I agree.with you because because it is there in.the master direction only Lawrence yeah.I agree.it's a gray areas little bit of because.there is specifically given in turn.number 3 point 1 - I agree with you I'm.saying what is happening is most of us.I'm when you pay Indian rupees take any.declaration or etcetera.that means brief readout of the out into.foreign currency unless unless you know.that you are making payment in foreign.currency will ravage and then only that.will apply to you is that something.which works for you punko van I think.that will be very a scheme because you.know that when you're exiting - like.50000 so but even declaration by travel.agent is not taken from you that is.going to buy foreign currency out of the.money you have paid no matter yeah I.mean just tell you because back.authorized dealer they take curd.declaration from travel this traveling.is taken definitely it will because we.don't know which line you are going.which as a Indian component or foreign.component therefore declaration is taken.by the travel agent will be used for.making remittance ad normally as.traveler bank details link it to.feathers and that is how they actually.link you to other declarations taken.from you are not the 80s of nights.who live all night against Pantanal.fakers and then I limit would be utilize.their under gnome over sir I think that.there is no way to circumvent them no no.also I am NOT asking or requesting or.the guide a to circumvent it I'm saying.if you do not know whether that would be.used for the purchase of twenty times.you or not in both this is only it will.be in addition to the LRC commuter we're.in this point is going to take on that.you know as per the law it is our duty.as a traveler not the rivet as by what.you said is right in that sense you only.think they don't ask we should be given.anything about guiding eutelsat comments.I think you got me wrong I was not on.that I was only on the point that.irrespective whether you declare or not.it gets you put it against your pen I.don't see a way out of you know coming.out to agree with you agree with you.agree with you so can you go to the next.case study please we just case study.three on export of goods and services.what we what are we given is question is.whether branch is required to receive.export proceed in accordance with the.notification 23 for all the exports made.to branch outside India of an Indian.exporter the second question which we.are asked is whether the company a.limited whose branches outside India is.required to receive.net of expenses or gross amount of.exports from its branch and see export.of software with onset development are.allowed to bring in foreign exchange net.of expenses on completing the project.whether in similar manner a limited can.also plan its transactions this is the.pure and simple questions we are all.aware of the provisions of branch.outside India by virtue of 10 are and.earlier circular 47 and circular.18 of 2006 that 10 percent 15 percent.and 25 percent and 10 percent each year.can be limited outside therefore the.maintenance will be branch because those.are the endings intended the initial.expenses as well as the recurring.expenses given to you by virtue of the.general permission now the first first.question which comes to my mind as a.practitioner on a conceptual basis.whether Bryant is a entity which is a.non-resident.answer is no we all know a branch of an.Indian company is a resident entity.under the provisions of section 2 we of.the FEMA so can.such an activity of a branch which is a.resident can be regulated by the wave of.circulars in etc yes Unseld can be found.in Section six six of the FEMA then it.says that branch although is a resident.entity can be regulated by the Risso.Bank of India and therefore such.circulars are to my mind are valid and.can be activities can be regulated now.coming to the export of goods and.services if we see the definition of.exports export of goods and services to.answer this question can you go to the.next next slide please 53 next slide.this product yes yes can you can you.just look at the next slide please.further further please.55 55 s-sorry what has happened sorry.this has come.sorry we we've surpassed can you go back.please.you.fifty-three please 53.you.yes if you see the definition of exports.of goods and services it say that taking.out of India to place outside India any.goods and provision of services from.India to any person outside India.so therefore when it comes to goods.it says taking out of India to place.outside India the goods have gone.outside India to branch there for export.of goods are considered as export of.goods although the branch is a resident.entity so it's a bit is it basically an.export from one entity to another entity.if you consider branch is an entity both.are resident but it is an export because.it is satisfying the definition of.export to i1 to l1 now if you see very.interestingly the definition of export.of services it says provision of.services from India to any person.outside India so therefore a provision.of services by an Indian company to a.branch probably will not be treated in.the export of services.so therefore when we one wanted to.answer about the proceeds to be brought.into India.Neto for the expenses or the full value.is found in section in its found in the.notification nine that full value of the.export should be repeated to India so if.for reason of services does not comply.with the definition of export will you.still be required to repatriate the full.value of these services that's what my.you know poser is to the end when we.export or when we supply roads provide.services to the branch outside India of.course I don't want to encourage that.the net or a Gauss or there's no.requirement to bring back the bring back.the provision of services into India.from branch but up but the mood question.is probably a net of expenses net of.expenses in case of a branch could be.consider however however since since.since the 23 our provision of 23 are not.to begin 23 are has regulated this.activities of provision of services also.without reference to the export of.services to any branch can can a.provision like this is within the.parameters of be for an exchange.FEMA 1999 up to date that's my that's.that is what I wanted to bring about in.this case studies and therefore answers.are available to you and discussion is.also available to you in this study so.can we go to the next case 2d please and.any question on this case study please.so what is our conclusion what is your.opinion whether or net of expenses.branch can see there are two regulation.in picture one is a notification of surd.23 R which talks about exports of goods.and services and which says that if it.is an export of goods and services we.have to bring back the full value of the.consideration now the definition of.export is not satisfied when you supply.your services to the branch so 23 R does.not apply to you if 23 R does not apply.to you then only branch regulation.section 6 6 applies to you right now 6 6.does not talk about any export of.services to the branch and it does not.try to regulate the provision of.services however normal activity of.goods will be treated as an export.therefore 23 R will apply to you and.other activities of other than 23 are.with the Indian company is not being.regulated so my answer is technically.you are going out of 23 R as well as 6 6.as well as the branch.but this is how a law can be read but.but since there is a provision of.off-site and on-site project in there.RB has tried to control the remittance.effect on negative text metaphor.expenses as well as full value probably.RBI thinks or the law talks to you and.this period that such such a fees also.to be brought into India at a full value.and not net of expenses I agree with you.because there are couple of things which.we can look into this aspect.first of all means there is a specific.law to remit only for a certain.percentage of the turnover on date worth.to the branch so that itself suppose if.one net of revenue then they would have.provided expressly secondly branch for.say is not considered as a you know.non-resident its resident because it is.owned and controlled by the person in.person and in India but at the same time.any we look at the definition of its.what it talks about only taking woods.outside India it is about you know.resident city is outstanding here right.so definitely in respect of boots so.there is no question because they are.yeah because their export equation form.another things which pointed to and why.but I agree with you there is a you know.so there's some clarity required here as.to whether you know once the branching.ranch is up and running.can it you know be self-sufficient in.respect of whatever you know income it.generates maybe you know some services.which are rendered by a branch outside.India a nerd then we brought to India.but vis-a-vis Indian you know solicitous.perhaps you know Indian services to the.branch only and why I am saying that.because the under the export of goods.and services the 23r has attempted to.regulate these services of this software.companies outside India.- to the provision of services through.brand where India also exports provide.services to the brands in such a.scenario they have tried to regulate so.therefore although technically doesn't.fit they are trying to regulate.therefore we should not violate the.spirit that's what I want to say but.closer buzz suppose you know it's very.practical.you know many professors have their.branches outside it what happens you.know an Indian performer end of the.services to the foreign branch so your.we are per your kiss tree is very really.yeah thank you raised by there is one.question I want to ask you velocity the.definition of export is where goods are.delivered outside India yes now what.about the case where the goods are.delivered in India at the instruction of.the customer but the payment is made.from overseas there is a yeah yeah.whether the delivery within India at the.instance of the foreign party that would.be considered as an export see this.particular aspect has been hotly debated.in our SMS group and this is not coming.out of the case study but I will know.then you can go on if it is saving time.yeah we can take it offline yeah yeah.so next case study three is ta.export a project yes there has been.always debate about the injection of.export whether export transactions are.current account transaction or a capital.ground transactions the first impression.of the reading is that since RBI has.issued a notification of 23r.and also various other memorandum of.import and the project export memorandum.me the first glance is that it could be.a capital account transaction however I.just wanted to tell you the group that.it is a current account transaction but.they the power of pronouncing the.regulation is arising from section 7 of.being Hema which allows RBI to frame.regulation for the important export of.the goods although although transaction.is a conduct on transactions will you.all agree with me so so therefore.therefore therefore the project export.is a typical situation where number of.four items of activities are difficult.to be carried out with the assistance of.423 are because these are all situations.which are beyond 20gr you know in a.turnkey project of an Indian company.which is a 10 million contract in this.case study it says that part of the.activities are carried out in India some.part is outside is in in a in outside.India there is a securement of.machineries for 200,000.and also local services of 800 if you.notice this 200000 of local purchase as.well as the services of 800,000 would.not even be covered by the current.regulation of 23r as well as the.provisions of merchandise trade because.in merchandise trade you require both.the leg of transaction input as well.export both outside India without.touching the shores of India ports of.India so therefore the question arises.as to how to carry out such transaction.although there are no regulation which.is in the nature of 23 our branch.outside India again does not help you.because the what is the normal.understanding of a branch outside India.is what an Indian company can do that.only can be done by branch outside India.bears don't be earlier case study that.if the full value of the export is.required to be remitted then the period.of remittance is also the same which.Indian company is obliged to bring in.the branch can do only whets Indian.coming into the branch cannot borrow II.if the Indian company cannot borrow the.branch also cannot borrow so in such.cases project exports of this nature.when branch outside India provision also.cannot help you and therefore RBI has.come out the right from 1992 the.provisions of the project exports.memorandum puja.so p.m. project antipodal memorandum.whereby a different scheme of.documentation has been prescribed I.picked up this case study only to.enlighten that how different situations.of the transaction between resident and.non-resident or between two residents.are a real-life situation which cannot.be income past the set of provisions.either of branch outside India or or by.export of goods and services outside.India and there.or third avenues has been created by the.Reserve Bank of India to to address such.situations and therefore this case curry.has been picked up and what this.regulations allows you is that you.submit is project plan of the entire.expenditure details which could say what.is your export from India to that.project which can say what is the.service is exported from this project.from this Indian company which could say.what is your local expenditure in the.project jurisdiction and what is your.purchase is outside India and what is.your purchase or export from India which.will not come back to India also so.these are the facilities provided in the.kind of a documentation which is called.as the PX documentation and the PC.documentation it takes care of all these.situations who carry out the project and.they they direct you to bring the.surplus into India after completion of.the project except the retention money.which may be agreed in that particular.contract so the details are to be.furnished upfront before taking up the.project outside India and all this.situations are encompassed in a.particular provisions of P M can you go.to next slide please.yes so these are the issues purchase of.goods without import into India purchase.of overseas services and payment through.banks how the Indian because your.banking facility is in India and project.is outside India but there could be a.banking facility outside India also so.how this payment will be made and what.kind of a documentation is required are.basically answered here in this case.studies ago I don't want to go through.the line by line but just to give you a.flavor but how the different transaction.situation can help you although it is.export of goods and services third.Avenue has been projected.of India it is not found in any of the.notifications either 23r or branch.office Olivia but I'll be I just to.consider this outside the scope of both.of both of these provisions and the.third provision is created by way of a.circular only and the last updated.position is of 2014 and thereafter I.don't think there is anything in this.aspect and this these are created by by.the FBI to facilitate the turnkey.project exports and in various countries.and this is a big business India is.having with the various third world.countries or four countries in India.where by the Government of India is.sanctioning the bilateral loan with a.condition that more than 60% of the.exports of goods and services must be.from India so this is the purpose of.creating this type of documentation and.the provisions under the law case of the.and key project exports can you go to.next slide and question please on this.any question please.so no question we go to the next case a.study which is on page 60 slide 16 these.are all provision of project.interpretive memorandum up to slide 60.so that you can peacefully study them.punished by yes way never done maybe.yeah.this consultancy fee payment of 110.million for infrared it will not apply.to this project export manually I.project exports because that approach to.project in India no not by the 1 million.10 million yeah I'll refer to in shadow.3 of the current account transactions.right so it's a current account.transaction of resident in India okay.and therefore it is in case of a.remittance of these fees or what.projects in India probably you are right.okay yeah it's a remittance of fees.right right so that this is the project.outside India you will not come to come.to this provision of current account.transaction because you will come to.come to current account transaction in.some situation you will go to projector.export in some some cases because.project exports is of course project.outside India but of an Indian company.and undergone transaction is also a.project of Indian company whether.outside India or in India may be decided.from the entire fact pattern of the.matter and we can consider which.particular provision we should use.because I'll tell you in project exports.also the feasibility study of this.project starts your career in advance.okay so probably you can consider the.current account transaction schedule 3.for the project feasibility study.outside India also yeah for such.projects which will be later on taken.over under the PM method okay I have few.experiences on this subject where we.have paid.a million dollar and size of the.consulting okay under weakened account.transactions okay because because the.project interpretive memorandum was.quite quite far from the pre-press.ability study so in those cases you can.definitely use a Schedule three of the.current okay and it is known individual.company cases right yeah so let us go to.the case study number four please answer.your question.yeah okay yes please next question.punishment and there is a one just wait.my laptop is going off so yeah sorry.about this.yes please sorry.shailen please so this is one project.which is awarded by some Africa.government to some medical medical.people in India I surgery and I check up.in Africa for that what did I say to.three million dollar from doctors.from India will go there to Africa and.also but they were all some local.services some like item equipments will.also have to be imported so will that.fall under this project export GICs this.will fall in project exports so what.formalities they will have to compete.for this I have already given the intent.of commendation in this case study in.response section there are two types of.form from the PX and the other form.which is a quarterly report to be given.of the project outside India one is DPX.which is advanced documentation giving.the entire project details it's a few.pages pages where entire details of.exports from India local services Indian.services and local procurement are.required to be given the profitability.projection is required to be given and.surplus details are required to bring in.[Music].the in the energy in the entire money.came to India you would have a.difficulty because money comes to India.it will be created any advance for.export of goods and services right once.it is treated as export of goods and.services you must export goods within.months or 15 months period as now.extended for covalent so if you are not.able to move its a project actually it's.not good and service is a project so.therefore we will have difficulty if you.are not able to complete your project in.nine months.so please see that either it is.completed or if it is not getting.completed then you must file DPX.immediately so thanks thanks all right.bye yes no no it is only for engineering.procurements and services this machinery.was created this area was created.specially for 20 project experts from.India where bilateral credit it has been.extended on a so variant basis by.Government of India to various countries.you know in olden days we used to get.circular then under the bilateral.agreement Government of India has.sanctioned 20 million dollar to.government of Senegal so these these.were conditional that 75 percent the.export will go from India that way.alright sir let us go to the odd case.study number 4 yes what a question tells.us that discuss the various alternative.available to mr. Anaya in India to.explore the real estate business.purchase and sell optimal property in.India discuss various distinguish.provision of famer for properties being.residential house or commercial property.dealing with a more properties and.construction business if I I put up this.case study it for a simple reason that.when we see the provision in relation to.the more property we are confused that.what provision to apply.whether the construction FDI has taken.in bond debt rules to be applied or the.provisions of shuttle for on a.non-repeating business should apply all.provisions of chapter 9 on the purchase.of purchase and sale of a more property.be applied the various advisors are.floating from authorized dealer and.other intermediaries that yes place you.can form and gain company buy the.property take loan from me and Perry is.known from rental collected from the.tenants and be happy about it so so such.such background I thought we should.understand as to how the provisions of.FEMA are designed that a one particular.compartment once you are following or.probably it will not be possible for you.to go out of that compartment because.this all has been designed if if.individual want to to certain.transactions then it is specified that.only individual can do if a if a.purchase of residential and commercial.house as specified in the particular.provision and on that rules mobile.properties by individuals then probably.that individual cannot go somewhere else.and find the solution which is that we.need and be flexible enough for them so.I thought let's bring out this.distinction of a compartment analysis.between the difference between the.various provision as to what they can.permit in what they cannot permit and.probably there cannot be any overlapping.between the provisions except in few.cases so so that is how I thought I will.bring out this particular case to be you.know that the first of all a.non-resident Indian can purchase the.properties and do business also and do.renting homes how the business are.available in the non dead rules one is.on the patient basis.another repatriation basis now the.repatriation bases are found in the.sectoral policies and a non-repetition.bins are found and which is exclusively.dispensation for analyzed and the OCR so.therefore if you want to dealing in in.with the immobile properties probably.that is prohibited if you are doing some.business of renting probably on a.non-repetition basis that could be.possibly done under an on debt rules.offer non-repetition basis and if you.are as an individual buying the property.for your bona fide use over for a rental.then probably you are following in.Chapter nine that regulations for amol.properties purchase and still buy in.ERISA no she is under three or four or.five different circumstances can you go.to the next slide please so guru go to.64 please line 64.so 61 girls wait please yeah so this is.now old notification 21 has been brought.into the non debt instrument for an.ERISA UCI also you will find that now.under the FDI conditions sectoral policy.also do permit the purchase of large.mall and be commercial properties for.the purpose of Lee is and it will not.amount to a trading of real-estate.activities and the in sector post policy.there is a disposition given to analyze.that the locking period of three years.will not apply to analyze yes so.therefore therefore if we if we.distinguish between a through three.option then nnin OC eyes can do.non-repetition the same activities.probably which is can be carried out.under the sectoral policy also fund a.repatriation basis they earlier there.was a separate activity list for the NRI.in those in our I know she is from.sectoral policies as distinguished from.the sectoral policy now they have.introduced everything in the sector.policy and say that only lock-in period.tests will not apply to analyze and oh.she is.and within locking period the project.can be sold between to analyze so there.is no difficulty but reputation can be.done only in cases where drunk.infrastructure is created another sector.policy whereas where is the laundry.participation there are no such.conditions but non-repetition basis you.can form an entity LLP.or the private company and do the.activity whereas when you want to.acquire property sell property the.circumcision which is stated in.individual purchase and sale then those.activities cannot be carried out on a.non dickish basis so therefore these.three alternatives must be made made out.very clear in our mind so that we do not.fall into.crap of violations of these provisions.of me know I think this is what I wanted.to suggest by this case studies if any.question I can pick it up this question.now.you.can we go to Kasturi fibrous on slide 65.this is the case study you know friends.that one of the important criteria to.resolve quickly the problem of resident.or non-resident in office is to consider.whether in what manner you can carry out.your transaction so that there is a.minimum minimum documentation and.regulatory requirement within the.purview of the law and quickly you can.do the transaction just to give an.example of a particular transaction how.the transaction can materially change in.terms of pattern and the nature of.transaction when we do it differently.hi popularly give the example which may.be repeated for some of the friends but.let me just express it how that can.happen.number one is when he when a gift is.required by a non-resident to be given.away to Indian resident there could be.two way at least to my mind that you can.give gift and we all know the generally.gift is a current account transaction.and if we can structure our transaction.with current account transition we don't.need any paperwork and the long.regulatory procedural aspects now in.this case if I give gift from outside.India by making a remittance to the.Indian bank account of a resident Indian.there is no difficulty it is a current.account reductions.however if I give same gift from another.account or an account in India it would.take a character of capital account.transition to my mind however the same.is permitted under the no deviation 5r.of the Pema so so therefore the same.transaction can be carried out under.different pattern and that pattern could.considerably change the course of action.and therefore an ability to convert a.capital account transaction into canoe.into a current account transaction by a.different methodology does not violate.any law at the same time it is safe and.it is SL free and less regulatory.requirement in that particular section.and therefore I thought I will structure.this case study in order to demonstrate.as to how a particular transaction which.looks which looks like a regulatory.known doable transaction and how it can.still be accomplished here is the case.study where we are told that your your a.producer and UK company engage in a.production of international frame and.you want to do a joint venture with the.Indian title and this joint venture is.5050 and the total cost of production is.about 1 million pound but the component.of the expenses are also given the 300.thousand of the total cost is likely to.be spent in India and seven or eight.thousand pound is likely to be spent.outside India from UK and the capital of.Indian company is capital and reserves.is 75 thousand and it's contemplating.the funding of its share of contribution.of GBP five hundred thousand to fight.finance the film the Indian company is.seeking the immediate solution to.finalize the structuring the.co-production finance as it did not have.time to approach RBI all prior beliefs.if any.timely advice Indian company so you are.asked to advise the UK company in the.Indian company how to carry out this job.efficiently without going into a.difficulty now as you know notification.120 prescribes various condition the.number one it is generally UK company.engaged already in production of.international film so that means it is.an existing UK company and an Indian.company is contemplating to invest fifty.percent in that particular company and.therefore to my mind immediately the.first requirement is the evaluation of.the UK company the second requirement is.that its capital is short of the limit.which is prescribed in regulation six of.the notification 120 that if I have to.spend five hundred thousand DBP as a.contribution to the UK film company then.certainly my capital requirement is at.least 125 thousand pound whereas my.capital is or is GBP 75 thousand only.another question which comes to my mind.or as a solution is that if if I am.supposed to spend three hundred three.hundred thousand in pooing in India and.seven hundred thousand in your UK can I.say that three hundred thousand I will.pay in India and therefore I don't.require to send money abroad anything.out of the three hundred thousand but.five hundred thousand will spend if.three hundred thousand is spend in India.he still requires two hundred thousand.to be spent he still required to give.three hundred fifty thousand to UK.company because because seven thousand.pound is required to be spent outside.India but spending in India and spending.outside India by different parties will.not be able to incorporate the.commercial requirement of the pipe is.and therefore that solution also did not.work so how to you know structure this.transaction in order to do it.efficiently of course he said.so I don't want to ask question to the.participants but what we suggested that.both valuation as well as the approval.because my capital is shot off for me.requirement can be avoided by.structuring a transaction between the UK.company and Indian company whereby.Indian company will send send half a.million pound for purchase of Indian.rights of the co-produced film and the.UK company will spend the rest by saying.that they will own the rest of the right.of the world and therefore the payment.made of a half a million pound to UK.company under the production of film and.retention of the rights by an Indian.company will amount to an advance.against the purchase of import of the.rights from the UK company and therefore.that will do away with the requirement.of the evaluation of the UK company as.well as the remittance within the.parameters of notification 120 and.probably you can do the transaction very.quickly this is what I thought could be.considered by the tax practitioner as a.as a tool to convert of very simply in.prima facie looking like a capital.account transaction into a current.account transaction to quickly provide.solution within the parameters of the.law and within the current account.transactions I think that is the.courageous give perish by have to.question to this case study yes please.when I'm sending the money as an advance.for the rights yes this goes in advance.yes and advance for services there is a.restriction of $500,000.so next since this amount is five.hundred thousand pounds the bankers will.not remit this money and number two when.I'm sending this as an advance right I.have to bring the services within a span.of six months select and if I do not get.those rights in the span of six month.then again another RBI complying.we'll start so what is your view on this.correct correct see you mentioned about.half a million dollar right yes.now half a million dollar and there is.also this is also a dispensation.available with the bankers then a half a.million dollar can go up to five million.dollars if if the Indian Bank is.comfortable with whitey in terms of the.facilities which is given to them on a.on a on and on fund based facilities and.number two number two is if the amount.is higher than half a million dollars.any form UK company is able to provide.the guarantees from the International.Bank in favor of the Indian bankers.which is contemplating in advance then.that transactions can definitely carried.out that is number one the number two is.about the import of the goods and.services within six months from the date.of making payments yes that requirement.is a must and if that film cannot be.produced within that time there is a.difficulty but what we are told that the.film is to be completely released by 30.separate 2020 and the finance is.contemplated during the 1920 so probably.that also answers your question okay.so that fine $500,000 to 5 million it.goes only for the import of goods for.services I don't think that limit is.available otherwise authorized dealers.for import of goods allowed that to the.five million dollar so so therefore.import of film is a set is import of a.completed film probably qualify for the.definition of goods according to me okay.is that something which satisfactory.answer is yeah thank you very much.obliged.next case study six please 169 on slide.number 69 para go to 69 I one sixty.sixty-nine that's right 69 right now but.I'm not able to see 69 yes now moving.yes there are two Indian companies ABC.and XYZ and there is a Spanish company.called element the ABC and ABC are the.holding in subsidiary in India eleven is.the foreign joint venture where Indian.company holds subsidiary company in.India holds 77 percent and twenty three.person is held by another Singapore.company which is also a subsidiary of.the Indian subsidiary company next slide.please will cheetah which shows you the.pictorial position alright next slide.please.yes yes that Victorian dad yes so ABC.hold 74% in XYZ and XYZ I the whole 77%.al-eman SA and XYZ through XYZ IPL.Singapore also hold 20% the question.arose as to XYZ LM NSA require funding.facility outside India and the question.was and X Y Zed was required to give.later of comfort and ABC was supposed to.give corporate guarantee the question.was whether ABC can give guarantee for.an on behalf of reminiscing the.provisions of for notification 1:20 and.guaranteed says his corporate guarantee.can be given for the subsidiaries or a.joint venture outside India if it is a.step down one or it is a step one.subsidy so the question was whether El.Amin has say is step one subsidiary or.step-down subsidiary if it is a step.down subsidy almay approval is required.otherwise our way approves not so so.they know typically 120 is very clear.when more than one PI D is either.investing in terms of capital loan or.guarantee then both parties together.constitute the Indian party and.therefore 11 si is to be treated as a.first-level joint venture or a.subsidiary and therefore a guarantee can.be given by the ABC under the framework.of notification of 120 the question 4.can be further split in a manner that if.100% of el-amin si were to be owned by X.Y Z IIb L then whether that particular.guarantee is possible or not to my mind.then it would become a second-level.company for the purpose of for ABC.giving guarantees on behalf of a lemon.sa to the Indian banker and in such.cases agnya prole will be required so.this is a purely a case study from the.guarantee perspective are given by the.Indian party on behalf of the loan given.to the foreign company which is J V or W.s is that of course I have reproduced.the entire provisions of the law to.appreciate that how this is to be.interpreted because of the Indian party.definition and the jvn hose is to be.considered only for the purpose.perspective outside India it is not to.be treated as a second or first by.considering the Indian company into.consideration Indian company needs to be.ignored because they are both considered.to be Indian piety for the purpose of.notification 120 I think these are the.issues involved in this case study and.therefore we can go to the next case.study on 73 any question on.on this case study Rajesh.nothing please go ahead.perfect.then also another question arose in the.case in the office of office from the.client that if there are issues raised.by the authorized dealer what should we.do.although I did raise the issue that no.no no we will not agree to this etcetera.then we suggested that okay.if that is the issue please request your.holding company to invest into few.shares of 11 Si and then provide the.guarantees so this was them the last on.the case studies and now this history is.on liberalized remittance scheme.overseas direct investment.he's also purely from the academic.perspective that how liberalized.immittance scheme differs from the.proper provisions of notification 124.the OD is and what is possible under 120.and what is possible under liberal.evidence came to tell you that something.which is possible in the liberal.immittance scheme could could be not.possible in hun 120 so that was the idea.to bring out this case study and.flexibility which is available under.notification 120 he is not available.under the liberal remittance team was.also a purpose to put out this case.study.know that under liberalized immittance.scheme the amount is fixed $250,000 only.secondly it can only be remitted as a.capital of the foreign company alone.cannot be given a guarantee cannot be.the third is a foreign company which is.set up under the liberalism itten scheme.cannot have a step down so these are the.so the deficiencies as compared to not.vacations 120 and in practice have you.notice some more difficulties like like.that you know.in the previous case study we have seen.that ABC and XYZ both can constitute the.Indian pypy.but whereas under the Liberals everton.scheme if if a investment is to be.combined under the liberalism scheme by.any neutral with an Indian company then.the also easier in the Reserve Bank is.not comfortable with such a transaction.otherwise one is investing in a 120 and.another one is investing under 20 a.should be he should not be difficult.should be possible because if even.Indian PI D is LLP as well as a company.under 120 then it is possible however.however LRS and company is mixed.together does not constitute Indian.party because definition do not include.individuals either Indian party and LRS.is a standalone of code by itself and.therefore that was also a difficulty one.more difficulty we encountered during.the transaction was that can I can.another individual.participate in the loan of the foreign.company because he has not made any.investment and therefore he is free to.make a loan to anybody outside India.including the foreign JV or W was aware.Indian individuals but that transaction.also did not found favor with the.regulator and e-eddie bank and so.therefore this was the difficulties.which were known in the law as well as.unknown from the law perspective so only.the plus point we found probably by all.of us is D in the area of a portfolio.investment that day notification 120.clearly says that the law applies to the.horses direct investment by purchase of.shares and subscription of the share but.does not include P portfolio investment.so when they law says then it does not.include portfolio investment so that.does it mean portfolio investment can be.made or portfolio investment cannot be.made according to me because 120.excludes portfolio investment to be.considered for the purpose of.permissible capital on transaction the.portfolio investment will not be covered.for the purpose of for ODI under 120.except the listed completion which is.allowed to be some some corporates in.India so initial will not be permitted.under 120 in any case so therefore the.question came up whether the portfolio.investment can be made under the.liberalized remedial scheme otherwise.then 120 and otherwise then the notable.regulation 28 the plausible answer was.found in favor of the parameter that yes.probably if you don't want to involve.this shuttle 5 regulation 28 and only.with 120 probably portfolio investment.can be made under the Liberals.immittance Kim outside the scope of 120.that what the or the difference.differentiation between the two schemes.and the practical issues which we.encounter and the floor is open for.questions on this subject if there is.any question otherwise.next question sir.among your sir I have money I have one.question sir under LRS you know these.immittance was made in 2013 so and that.was done LRS was done into a singapore.account in Singapore account these.amount was utilized to subscribe to.shares in Dubai company so sir my.question is whether ODI is required in.such scenario again so direct I missed.you in 2013 under LRS I made so I.remitted some funds in you my Singapore.account single bank account purely US.dollar I come from that Singapore US.dollar account in 2020 I got an.opportunity so I invested in one come.forming a company in Dubai hmm whether.now am I supposed to file a form ODI.because practically when we approach.HDFC bank today are having no clue our.bankers are HDFC bank okay this this.remittance and the formation of company.was made I had to focus 2013 all up to.that so it was after 5th August 2013 it.was under this LRS and it was in the.Singapore account in my US dollar.account say the fundamental principle of.the FEMA is what is directly not.possible is indirectly not possible do.you agree with me yes sir so by using.the repeting scheme and keeping the.money in bank account you are you have.invested in the foreign company right.yes sir yes directly you could not do.that right yeah I could not be n.etcetera right yeah yeah given your.answer was okay thank you.what answer yeah ayah so basically it.has to be routed to authorized dealer.only and the remittance has to be from.India only if I have to form a company.means subscribe to shares of a company.in Dubai or any real physical yes yes.okay thank you can we go to 7 a case.Tony on a slide 85 please it won't slide.85 No.what I'm covering is certain the.practical issues arising of the.remittance under this scheme basically.you.you.is slide 85 visible the first issue is.is it possible to make payment for.incorporation of a foreign companies.service provider before the.incorporation is purchase of minimum.shares from a company agent treated as a.purchase of shares of an existing.company what folio investment is.permitted is and such a combination of.India with companies in order so the.last two question we already answered I.believe the first two question is it.possible to make a payment of foreign.corporation of a foreign computer.service provider before the.incorporation if you treat this as an.expenditure of a holding company in.India because the company is still not.in existence.probably this expenses can be paid by an.Indian company to a service provider as.a current account transaction being it.sure all our expenses before.capitalizing the company this is the.answer and if the authorized grower do.not agree with such things then there.are difficulties right then in those.cases provide probably agent can.purchase the shares what is the shares.without any obligation on your part to.purchase those shares on that day but.you can then definitely purchase this.this shares from the agent and it is an.existing company and therefore we.valuation issue may or may not arise if.if the stand is taken by the authorized.dealer that there are no activities but.the foreign agent has formed this.company as a nominee of the Indian party.and if if the purchase of share the.formation of company and the purchase of.share is in the same year probably there.won't be any difficulty otherwise even.in different layer you will have to.create a liability to purchase the.shares and therefore if that transaction.is not implemented then there is a.difficulty because certain situation.Odia is also required to be fine without.remittances now earlier it was hard to.find out whether the ODI is required to.be fine without making any remittance.but now in the new author of home ODI.required to file ODI.even if you create certain liabilities.of God therefore I think that is the.response to the second query on this.particular slide 85 and we go to the.next case study base which is on page.number 86 it student movement is one.question yes please.and he is asking whether individual can.invest in sir that is only answered I am.he amongst only I just asked online yes.sir thank you yeah let us go to the hey.study number seven be on slide 87 yes.this probably is also similar to.whatever we have discussed so probably.this is also under that company income.in Singapore on 1st October 11 upon.incorporation whether there is any.obligation so that I think we have.answered on recognition of the overseas.subsidiary whether required to be done.or not.if the remittance is not made then we go.to the next case to be which is on.7c right yes this is also history.revolving around the OD I let a normal.marketing company outside India in the.nature of facility management travelling.payments made on we have overseas.venture to its suppliers etc steam when.you are forming a marketing subsidized.outside India your branch route is not.applicable to you but only ODI a route.is applicable to you but what happens.the certain expenses are done by Indian.company on behalf of the the foreign.company overseas and let's say.travelling expenses the normal normal.facility management expenses in India.which are in the temporary nature so the.question is whether while making such.payment whether you are required to file.home video or not and whether it is a.capital account transaction alright.under compensation kindly discuss to my.mind if these expenses are made out and.if they are settled within twelve months.from the time it is spend then probably.it will fit in the definition of current.account transaction in the nature of.short term credit given to the overseas.subsidiary or a joint venture however if.it is exiting twelve months it will not.fit in the definition of capital account.transaction and therefore it will come.out for reporting by our form ODI by.saying that this amount is spent on.behalf of the foreign company without.making any remittance and therefore that.is how this question can be addressed.you can go to the next case study yes.please section three b2k study 7c not.really so how do we actually come out of.it.because not really because in a in a in.a short term.credit facilities will not include only.Khaz Modan transaction isn't it let's.say if it is a cross-border transaction.then definitely section three will be.attracted all right but I am giving a.short term credit facility to my.overseas subsidiary in India and I am.governed by the regulation which I am.properly reporting on I believe in your.case 20 it is payments to third parties.right.he went to third parties but on yes no.that is three see my why I am talking.about three mean that no person shall.make a payment for all to the credit of.a person listened outside India of.course the extent is permitted it is.allowed right yes sir so there is the.express permission for this under law.short term credit facilities yeah look.at the item number one in the definition.of kernel account transactions because.it is current account transaction simply.do you come out of Section three.this is the current account transaction.of a resident in India right not.specified in any of the schedule oh yes.we are me to say any any current.occurred transaction which is actually.permissible will come out of Section.three yes.so I actually held the same you but I.have come across some compounding orders.probably you know I can discuss with you.offline sure definitely thank you sir.for giving with me it's a good point.thank you very much sir next case study.next case study is on page number this.is on page 91 yes is it visible yes can.you see page nine okay.what it's say this case study says is.that we are an expert house and in this.export house if we want to if we have a.proprietary concern and there are huge.outstanding is remaining then weather.can we solve this problem.by utilizing notification 120 in some.manner anything answer is so then.whether the proprietary concern is.advisable or the company is advisable.that was the question.now the answer can be a template in.following manner that when we look at.the notification 120 regulation 11 it.allows you to capitalize the export of.goods and services of some nature to the.foreign subsidiary or a joint venture so.you need not consider the receipt of.payments against this particular exports.to the foreign company so the answer is.found that yes you can capitalise the.export of goods and services to the.extent whatever working capital is.required by you abroad the second.question was whether the company is good.or a proprietary concern is good the.answer is very simple that the company.is preferable because in a proprietary.concern is formed then definitely you.I'll be a pirate rule for doing such.transaction and this is what the answer.plausible answer I thought can be given.for these case studies next case study.please is on page number 96.yes yes 96 91 no 296 correct yeah 756.how much time we have whereby we have 10.case studies after this study we will.conclude we will keep another meeting at.a convenient date.okay perfect this is a very important.case study yes real-life case study very.interesting case study so we may extend.5 7 mins more that's all XY is that an.international company limited in a.company incorporated in Ewing and as.factories in her Maria fly zone and.Fujairah.it is into a large-scale impc contract.for more than two decades entry it is in.final illusion with an Indian company.contract contract involving various.aspects to the transaction of 430.million dollar trust that well there was.a 10% advance for the goods and services.and there was a milestone payments in.next six months time and there were.services also the question is - how to.make a 30 million dollar payment in.advance.because within six months thirty million.payment to be made in advance has a.difficulty because advance is to be made.in advance against the import of the.goods and services the import of the.goods services maximum payment we saw.while deliberating with the Rajesh that.five million for goods and a half a.million half a million for services most.of the expenses to be incurred was in.Sharjah outside India and percent of the.expenses were attributed to the material.which is produced outside India.it was only for services how to.structure city transition because one.company party did not want to come into.India and set up the project offices so.it is given that foreign body has no.loan facilities in India is not intended.to take any loans from anybody and the.transaction was to be signed in a matter.of 30 days or so also Indian car the.foreign company did not want any payment.in the Indian rupees also the project.office being in India the transaction is.carried out in Indian rupee there is a a.lot of difficulties in you know making.image abroad by spending foreign.exchange losses and etc so the question.arose as to how to structure this.transaction in the best manner because.because if there are no banking.facilities and project is not approved.by any statutory authority in India that.project offices are not under the.automatic rule physics so so you require.a pileup rule for non-resident to to.consider the project approval so it.takes time and that we are not able to.enter into a transaction you cannot give.more than five and a half million dollar.more than half a million dollars unless.there is a guarantee is given by the.non-resident of an international bank.for an advance.higher than the 5 million won which.non-resident is not obliged to consider.also we explored whether the Indian.resident can form a project office.outside India to only procure these.goods so that it can send money to for.the project outside India under the.under the either DPC scheme or the.branch outside India but that also did.not work because this was not a project.outside India was a project in India.because it's an import of goods and.services and therefore that was also not.viable and the branch also was not.viable because banks will not allow them.to remit large amount outside India for.the purpose of government of the goods.just to be ultimately important into.India so we came out to the conclusion.that what is the best solution.that the Indian company can approach FBI.quickly by saying that you have to make.larger payment without the guarantee of.the international bank and also the also.also the other aspect was the advance.which was to be given and be export the.the import which could arise may exceed.the six months time on both this.criteria we advise the Indian company.the kind was foreign kind would be then.has to come up the best solution and the.Indian company should go to RBI by.saying that we have to pay more advanced.than the $5,000,000 because there are no.banking facilities and large payment are.going for the procurement of the goods.which is 80 percent and white which is a.milestone payments and milestone.payments are definitely secured payment.because the goods are lying in the.custody of the foreign customer which.can be extended to to the Indian PI T by.virtue of title to the goods so.considering all this possibility we.advise Indian community approach RBI.immediately so that six months timeline.can be avoided and more than five.million women could also be avoided and.that was the best way to provide a.solution in this what's of ifs and buts.also issue was what more issuers office.is situated in India where these civil.work in etc is only 1015 days or for.travelled by the foreign company and if.they were to have a project office in.India then it could have a exposure to.the of the P in India and which will.probably have a large exposure of 40.percent plus Texas for the foreign.company and which was really a very.large risk and which which which which.was a moot point in convincing the.Indian company that you should go for.the approval and not the project office.outside India why we should go to be.visual Bank of India I think that was.the matter which we discuss in this.transaction and that is what the.solution we provided with this thank you.very much for the members and dear.friends for patient here.and if then I make that.you.so this is Reiter here from Chennai can.have 1/5 1 questions yesterday so I'm a.practicing couple as you complete from.Chennai I met you in Chennai.yeah oh thank you so much are you.remember me yes that was the CH suit for.two day seminar yes I was there sir see.I had invested I had made an investment.in a foreign company and I got the you a.number for a for a hoodie I made that.was made.correct that that foreign company had.merged with an Indian listed company in.India okay.cross-border module meet the shares have.been given through the scheme if the.shares have been given not to the.foreign company but as a promoter it has.been given to me because me and my.partner of the to shareholders or to.promoters of the foreign company right.so the little Indian lizard company gave.me gave us gave us this yes rather than.giving these chefs the foreign companies.foreign partnership as being older.directors now the OD is the the you a.number that has been allotted for the.ODI is in limbo.II do do you advise us to go to set the.RBA and cancel the event number of.houses number is there I am obliged to.find other things whereas the company.itself is not in the overseas company.itself is not in existence.see what is happened here is that the.overseas company has been converted into.branch basically because there are SS.the overseas company right now there are.no assets everything has been told is no.us if it is wound up yes and all assets.are brought into India perfectly alright.otherwise normally conversion of company.into branch also is done like this by.merging with the Indian company however.in your case study in your question you.are the shareholder of Indian company.right correct it's a little company.right and you are given the shares of.which company on the Indian entities.with which is the foreign companies.you're even shares of Indian company.right exactly so basically it says.mergers of opponents in India and.cross-border merger is is falling within.the parameters of the ODI guideline you.fall within the ODI guideline then the.shares can be given to you without any.difficulties and you are number will be.canceled by the Indian company they have.not consulted no sheep oil company.liquidated right yes assets are brought.into India right yes.so this investment report is find yes.letici news will report is while they.have to take into consider you hit it.okay.so what is the rate of the signals are.the order of the rate of Psych off of.the oil company in the all these to be.the date of liquidation see that is the.reality the liquidation process goes.long yeah note that it is overnight.I am giving you practical yeah when you.pass a resolution to liquidate the.foreign companies report a transition.starts correct now and within 90 days.you have to bring back the entire.proceeds of a liquidation right correct.so therefore if you inform now any food.breach the line of 90 days you may have.to approach this topic of India again.okay okay so you must work backward so.that your disinvestment report is filed.in accordance with the timeline of.liquidating all the assets and.liabilities of the OSes company okay.once you file the liquidation report.bringing everything in 90 days okay why.the unique ID number has to be canceled.okay I got it I got it I got it.hello I love Ross 80 banker and push it.on owning the Indian company shares and.therefore there is no question of any.reporting requirement under identical.number exactly all right pause it answer.your question in several answers my.question the only thing is the whole.transaction I have been completed and it.was not reported within 90 days more on.number two is the question is when does.the 90-day clock starts whether it is.from the date on which the Indian.insularity has gave us the order or is.it the date on which the Aussies company.struck off the name of the company from.its register that's the question with.which this trade pact is now asking us.I'll tell you different scenarios there.there may be a transaction of sale of.shares of an overseas company to a.non-resident now there let's say the.payment guideline if you are enter into.a shell purchase agreement then that is.the date of sale purchase agreement is a.date of liquidation though the process.starts from there and you must report.the transaction and the Machine must be.brought in 90 days if you are not.bringing any proceed within the timeline.you must get a prior approval from the.bank.oh very simple answer hello yes please.so my name is nilsor Danny so can partly.paid up equity investment receive in.private limited company on.non-repetition business from NRI can be.forfeited without RBI approval yes.because our non-repetition bizzy's.you are going by the company lonely not.by famous okay okay thank you but will.give a interim vote of tens to Perez.boys sure absolutely.Perez way thank you so much once again.for you know sharing your knowledge and.enlightening us.it was indeed a pleasure having you and.asked read my mentioned you'd love have.you once again remaining key studies and.if possible you know many more in future.and I.also would like to thank BCA once again.for giving me this opportunity and also.thank you to my office.meet Alicia here Open champion and my.friend versa for allowing me to share.some of the case studies from her.perspective also announcement you know.we have the arranged online favor if.Richard puts starting from Monday 27th.so I you know you might all of you to.join it and we'll be sharing the details.on what subgroup if anyone wants to know.further about it because there are.different five sessions are then in five.different zoom IDs are there for joining.that so please watch out for that.announcement it's just already there if.any case if somebody doesn't get it.contact any of the conveners rajesh.arkady our craft and you will get all.the information thank you very much for.this great thank you for joining and.sharing your valuable knowledge.

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Fema Form 119 25 2 FAQs

Read the below common confusions about Fema Form 119 25 2. Speak to directly if you still have other queries.

Need help? Contact support

When do I have to learn how to fill out a W-2 form?

While I did not study physics this is something that relates to my field as well. One thing to remember is the scope of the field which you are talking about. With physics it might seem narrower than History or Archaeology but I suspect that when you boil it down it isn’t. It would be impossible to cover everything in a subject even going all the way through to gaining a doctorate. The answer you got and posted up is very accurate and extremely good advice. What a lot of it boils down to in education (especially nowadays) is not so much teaching specific facts but teaching themes and how to find Continue Reading

How can IRCTC expect us to fill up an online train seat reservation form in just 25 seconds?

Have all your details ready and then aim at this task. If time exceeds, pl resubmit. Train no, from to station, date, class, name sex and age have to be alone filled.

How do you fill out a W-2 form?

In general, the W-2 form is divided into two parts each with numerous fields to be completed carefully by an employer. The section on the left contains both the employer's and employee`s names and contact information as well social security number and identification number. You can find a lot of information here: http://bit.ly/2NjjlJi

How do I fill out an NDA 2 application form?

visit Welcome to UPSC | UPSC click on apply online option their and select the ndaII option. Its in 2 parts, Fill part 1 and theirafter 2nd as guided on the website their.

How do I fill out the IT-2104 form if I live in NJ?

Do you work only in NY? Married? Kids? If your w-2 shows NY state withholding on your taxes, fill out a non-resident NY tax return which is fairly simple. If it doesn't, you don't fill out NY at all. If it shows out NYC withholding you enter that as well on the same forms. Then you would fill out your NJ returns as well with any withholding for NJ. Make sure to put any taxes paid to other states on your reciprocal states (nj paid, on NY return and vice versa)

How do I find my FEMA SID number?

Two Steps for TIN Number Verification Visit the website of the online information system TINXSYS (Tax Information Exchange System), a government initiative to help the commercial tax departments of States to identify the interstate exchange and monitor them effectively. Just enter the TIN and expect the results

What is a FEMA SID number?

Possibly State Identification number. Example: NYSID, used in New York State to establish an individual’s identity definitively whether an alias is used or not. Like the FBI number assigned in federal cases, an SID is based on the submission of fingerprints.

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