FEMA

Liberalised Remittance Scheme and TCS Updated 2022

Income Tax - If you are a person in India you may remit amount outside India for various purposes such as foreign trip, education, medical facilities, investment abroad, sale proceeds of investment in India, income earned in India. In order to regulate such remittances laws have been framed under Foreign Exchange Management Act, 1999 and Income Tax Ac...

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Annual Return on Foreign Liabilities & Assets (FLA) under FEMA 1999 – FAQs

Income Tax - The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by the following entities which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e., who holds foreign assets or/and liabilities in their balance sheets...

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Regulatory updates for the Month of October 2022

Income Tax - Company Law: 1. Supreme court held that appeal for restoration of company’s name can’t be maintained by one whose status as its director is disputed. Insolvency Law: 1. (IBBI) has issued the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2022. 2. NCLAT issues directions fo...

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Annual Performance Report (APR) for investments made Outside India

Income Tax - 1. Introduction on filling of APR for investment made Outside India (i) (a) Filling of APR is mandatory for investment made outside India by  resident individual + resident non individual (both) for investment in Joint venture (JV) + Wholly owned subsidy (WOS) both Outside India.  Resident non individual is known as Indian Party (IP) (b...

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Late Submission Fee (LSF) on FC-GPR, FC-TRS etc.

Income Tax - The time limit for reporting the Foreign Direct Investment (FDI) under Single Master Form (SMF) is provided under Regulation 4 of Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019...

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FEMA Authority confirmed seizure order of Rs. 5551.27 Crore against Xiaomi Technology

Income Tax - Competent Authority appointed under FEMA has confirmed the seizure order of Rs. 5551.27 Crore dated 29.04.2022 passed by the ED against Xiaomi Technology India Private Limited under the provisions of FEMA. Press Release – 30.09.2022 The Competent Authority appointed under Section 37A of the Foreign Exchange Management Act has confi...

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Illegal Online Forex Trading – ED freezed bank account of OctaFX & related entities

Income Tax - ED has freezed bank account balance to the tune of Rs. 21.14 Crore, of M/s OctaFX and related entities in the case of Illegal Online Forex Trading through International Brokers namely OctaFx Trading App and website www.octafx.com under FEMA. Press Release – 29.09.2022 Directorate of Enforcement (ED) has freezed Account balance to t...

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Overseas investment rules and regulations notified

Income Tax - Overseas investment rules and regulations notified Another step towards Ease of Doing Business In line with the amendment in the Foreign Exchange Management Act 2015, Outward Investments Rules have been framed by the Government of India in consultation with the Reserve Bank. Presently, the overseas investment by a person resident in India...

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ED imposes penalty on Amnesty India & its CEO Aakar Patel

Income Tax - The Adjudicating Authority of ED has adjudicated a SCN issued to M/s Amnesty India International Pvt. Ltd.(AIIPL) and its CEO Shri Aakar Patel for contravention of the provisions of FEMA and imposed penalty of Rs. 51.72 Crore and Rs 10 Crore respectively. Enforcement Directorate Press Release 08.07.2022 The Adjudicating Authority of Direc...

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Resident Indian bound to repatriate income earned on assets held outside India

Income Tax - In general, a person resident in India to whom any amount of foreign exchange is due or has accrued is duty bound to take all reasonable steps to realise and repatriate such foreign exchange to India, save as otherwise provided under the provisions of Foreign Exchange Management Act, (FEMA), or the rules and regulations made thereunder, o...

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HC disposes writ as equally efficacious alternative remedy available before Appellate Tribunal

Directorate of Enforcement Vs PC Financial Services Private Limited & Anr. (Delhi High Court) - Delhi High Court held that High Court had disposed of the Letters Patent Appeal as the Appellate Tribunal was not functional, however order was passed when the Appellate Tribunal became functional. Accordingly the order passed in LPA will not come in the way of the parties as an equally efficacious ...

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RBI cannot reject remittance on whimsical & arbitrary reasons

RBI Vs Jindal Steel And Power Limited (Delhi High Court) - Power of RBI to withhold remittance to be made under Automatic route to Wholly owned Subsidiary cannot be used to reject the remittance on whimsical and arbitrary reasons....

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Offence under FEMA – Distinction between two stages of adjudication process

J P Morgan India Private Limited Vs Special Director, Directorate of Enforcement and Anr. (Delhi High Court) - J P Morgan India Private Limited Vs Special Director, Directorate of Enforcement and Anr. (Delhi High Court) Brief: Offence under FEMA – Distinction between the two stages of the adjudication process – eligible reasons by the respondent no. 1 for the formation of opinion to proceed with ...

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Excess jewellery seized : ED should pass reasoned order

Banka Bullion Private Limited Vs Assistant Director & Ors. (Calcutta High Court) - Banka Bullion Private Limited Vs Assistant Director & Ors. (Calcutta High Court) With regard to the search and seizure of the excess jewellery that has been seized by the Enforcement Directorate, it is to be noted that in the writ petition, the petitioner has relied on several documents to indic...

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No interest liability against ED u/s 42(3) towards seizing of travellers cheques

Smt. Sulaihar Vs Deputy Director, Enforcement Directorate (Madras High Court) - Since the petition against Enforcement Directorate towards claiming of interest under section 42(3) of FERA towards seized travellers cheques was filed more than 9 years after receiving the rupee equivalent of UK Pounds 1800 without providing of any reasonable explanation for the delay, therefore, t...

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RBI (Unhedged Foreign Currency Exposure) Directions, 2022

RBI/2022-23/131 DOR.MRG.REC.76/00-00-007/2022-23 - (11/10/2022) - Banks shall ascertain the Foreign Currency Exposure (FCE) of all entities2 at least on an annual basis. Banks shall compute the FCE following the relevant accounting standard applicable for the entity....

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Foreign exchange activities – SPDs to adhere to Prudential regulations

Notification No. RBI/2022-23/127 DOR.FIN.REC.No.73/03.10.117/2022-23 - (11/10/2022) - SPDs shall adhere to prudential regulations and other instructions contained in circular related to foreign exchange activities and other associated guidelines applicable to SPDs....

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RBI allows SPDs to offer all foreign exchange market-making facilities

Notification No. RBI/2022-23/126 DOR.FIN.REC.No.72/03.10.117/2022-23 - (11/10/2022) - RBI permits SPD to offer foreign exchange products, as allowed from time to time, to their Foreign Portfolio Investor (FPI) clients....

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Late Submission Fee for reporting delays under FEMA

RBI/2022-23/122 A.P. (DIR Series) Circular No.16 - (30/09/2022) - Late Submission Fee (LSF) for reporting delays in Foreign Investment (FI), External Commercial Borrowings (ECBs) and Overseas Investment related transactions ...

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Rupee Drawing Arrangement – Enabling BBPS to process cross-border inbound Bill Payments

Circular No. RBI/2022-23/115 A.P. (DIR Series) Circular No. 14 - (15/09/2022) - Please refer to A.P. (DIR Series) Circular No. 120 dated April 10, 2014 on ‘Rupee Drawing Arrangement – Direct to Account Facility’, in terms of which, foreign inward remittances received under Rupee Drawing Arrangement (RDA) can be transferred to the KYC compliant beneficiary bank accounts ...

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Recent Posts in "FEMA"

Liberalised Remittance Scheme and TCS Updated 2022

If you are a person in India you may remit amount outside India for various purposes such as foreign trip, education, medical facilities, investment abroad, sale proceeds of investment in India, income earned in India. In order to regulate such remittances laws have been framed under Foreign Exchange Management Act, 1999 and Income Tax Ac...

Read More
Posted Under: Fema / RBI |

Annual Return on Foreign Liabilities & Assets (FLA) under FEMA 1999 – FAQs

The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by the following entities which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e., who holds foreign assets or/and liabilities in their balance sheets...

Read More
Posted Under: Fema / RBI |

Regulatory updates for the Month of October 2022

Company Law: 1. Supreme court held that appeal for restoration of company’s name can’t be maintained by one whose status as its director is disputed. Insolvency Law: 1. (IBBI) has issued the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2022. 2. NCLAT issues directions fo...

Read More
Posted Under: Fema / RBI |

HC disposes writ as equally efficacious alternative remedy available before Appellate Tribunal

Directorate of Enforcement Vs PC Financial Services Private Limited & Anr. (Delhi High Court)

Delhi High Court held that High Court had disposed of the Letters Patent Appeal as the Appellate Tribunal was not functional, however order was passed when the Appellate Tribunal became functional. Accordingly the order passed in LPA will not come in the way of the parties as an equally efficacious alternative remedy available before the ...

Read More

Annual Performance Report (APR) for investments made Outside India

1. Introduction on filling of APR for investment made Outside India (i) (a) Filling of APR is mandatory for investment made outside India by  resident individual + resident non individual (both) for investment in Joint venture (JV) + Wholly owned subsidy (WOS) both Outside India.  Resident non individual is known as Indian Party (IP) (b...

Read More
Posted Under: Fema / RBI |

Late Submission Fee (LSF) on FC-GPR, FC-TRS etc.

The time limit for reporting the Foreign Direct Investment (FDI) under Single Master Form (SMF) is provided under Regulation 4 of Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019...

Read More
Posted Under: Fema / RBI |

Obligation for filling of foreign Liability + Asset (FLA) return in India

Introduction on filing of FLA return  1. Filing of FLA return for collecting of Balance of Payment (BOP) position for RBI RBI is compiling the information’s to be collected through filing of FLA return for purpose of knowing India’s BOP position + International Investment Position (IIP both) in India + Outside India (both) on March [...

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Posted Under: Fema / RBI |

RBI (Unhedged Foreign Currency Exposure) Directions, 2022

RBI/2022-23/131 DOR.MRG.REC.76/00-00-007/2022-23 11/10/2022

Banks shall ascertain the Foreign Currency Exposure (FCE) of all entities2 at least on an annual basis. Banks shall compute the FCE following the relevant accounting standard applicable for the entity....

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Impact of residence status on taxation

1. The taxability of a person rests on resident status, source of income and the place of receipt of income. We have prepared this note for the purpose of determining the taxability of persons who are citizens of India but resident outside India or Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) Overseas Citizenship [&hell...

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Posted Under: Fema / RBI |

Foreign exchange activities – SPDs to adhere to Prudential regulations

Notification No. RBI/2022-23/127 DOR.FIN.REC.No.73/03.10.117/2022-23 11/10/2022

SPDs shall adhere to prudential regulations and other instructions contained in circular related to foreign exchange activities and other associated guidelines applicable to SPDs....

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