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REMITTANCES INWARD
- THERE IS NO RESTRICTION ON RECEIVING REMITTANCES
REMITTANCES INWARD THERE IS NO RESTRICTION ON RECEIVING - - PowerPoint PPT Presentation
REMITTANCES INWARD THERE IS NO RESTRICTION ON RECEIVING - - PowerPoint PPT Presentation
Chapter No. Page No. 10 210 International Finance FOREIGN REMITTANCES REMITTANCES INWARD THERE IS NO RESTRICTION ON RECEIVING REMITTANCES IN INDIA FROM ANY FOREIGN COUNTRY IN FAVOUR OF A RESIDENT IN INDIA AND EXCEEDS US $ 50,000
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FIRPS THE FOREIGN INWARD REMITTANCE PAYMENT SYSTEM (FIRPS) IS A SYSTEM DEVISED BY THE FEDAI FOR QUICK TRANSMISSION TO BENEFICIARIES IN INDIA OF THE PROCEEDS OF INWARD REMITTANCES RECEIVED FROM ABROAD THROUGH THE BANKING CHANNEL.
FOREIGN REMITTANCES
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CERTIFICATE FOR INWARD REMITTANCE AN AUTHORIZED DEALER MAY ISSUE A CERTIFICATE TO THE BENEFICIARY OF AN INWARD REMITTANCE EITHER IN FOREIGN CURRENCY RECEIVED THROUGH HIS MEDIUM OR IN RUPEE BY DEBIT OF A NON-RESIDENT ACCOUNT, OR TO A PERSON SURRENDERING FOREIGN EXCHANGE TO HIM.
FOREIGN REMITTANCES
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REFUND AN AUTHORIZED DEALER MAY AT THE REQUEST OF HIS OVERSEAS CORRESPONDENT, CANCEL AND REFUND, WITHOUT REFERENCE TO THE RESERVE BANK, AN INWARD REMITTANCE IN FOREIGN EXCHANGE.
FOREIGN REMITTANCES
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REMITTANCES OUTWARD REMITTANCE FROM INDIA IN ANY PERMITTED CURRENCY TO A BENEFICIARY ABROAD MAY BE MADE BY AN AUTHORIZED DEALER AGAINST AN APPLICATION BY A PERSON, FIRM, OR BANK OTHER THAN AUTHORIZED DEALER RESIDENT IN INDIA.
FOREIGN REMITTANCES
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RECURRING REMITTANCES FOREIGN NATIONALS WHO ARE NOT PERMANENTLY RESIDENT IN INDIA HAVE REGULAR EMPLOYMENT WITH AN INDIAN FIRM,ON MONTHLY SALARY BASIS ARE PERMITTED TO MAKE RECURRING REMITTANCES FOR FAMILY MAINTENANCE, UPTO 75% OF THEIR NET SALARY. EVERY TIME A REMITTANCE IS MADE THE AUTHORIZED DEALER SHOULD OBTAIN FROM THE APPLICANT A DECLARATION.
FOREIGN REMITTANCES
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RECURRING REMITTANCES (EXCEPTION) FOREIGN NATIONALS EMPLOYED / ENGAGED IN THE HORSE-RACING TRADE, CABARET ARTISTS, WRESTLERS AND OTHER ENTERTAINERS ARE NOT ELIGIBLE FOR REMITTANCE FACILITIES. IRANIAN NATIONALS NOT PERMANENTLY RESIDENTS IN INDIA, MAY BE PERMITTED TO MAKE REMITTANCES TO THE EXTENT OF RS.1,000 PER MONTH PER APPLICANT TO THEIR DEPENDENTS, PROVIDED THE AUTHORIZED DEALER IS SATISFIED.
FOREIGN REMITTANCES
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CANCELLATION ANY REMITTANCE IN A FOREIGN CURRENCY MAY BE CANCELLED IN PART OR IN WHOLE BY THE AUTHORIZED DEALER SUBJECT TO A REPORT TO THE RESERVE BANK UNDER RELEVANT RETURN. THE REPORT SHOULD BE MADE BY CONVEYING FOLLOWING PARTICULARS.
- THE NUMBER AND DATE OF THE RETURN IN WHICH THE
SALE WAS REPORTED.
- THE NAME AND ADDRESS OF THE APPLICANT.
- THE AMOUNT SOLD.
- THE AMOUNT CANCELLED.
- THE REASON FOR CANCELLATION.
FOREIGN REMITTANCES
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REMITTANCES NOT PERMITTED TO NON CO-OPERATIVE COUNTRIES, VIZ. COOK ISLAND, EGYPT, GUATEMALA, INDONESIA, MYANMAR, NAURU, NIGERIA, PHILIPPINES AND UKRAINE. REMITTANCE BY DRAFT, etc., IN FAVOUR OF THE APPLICANT, EXCEPT IN THE CASE OF A TRAVEL ALLOWANCE. REMITTANCE REPRESENTING TRANSFER OF FREIGHT OR PASSAGE EARNING. REMITTANCE ON ACCOUNT OF FOOTBALL POOLS, SWEEPSTAKES OR OTHER LOTTERIES IN FOREIGN COUNTRIES.
CONT.... FOREIGN REMITTANCES
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REMITTANCES NOT PERMITTED REMITTANCES REPRESENTING INCOME ON ASSETS WHO EMIGRATED WITHOUT EMIGRATION FACILITIES. REMITTANCE REPRESENTING TRANSFER OF ASSETS OUT OF INDIA , OWNED BY INDIAN NATIONALS. REMITTANCE OF ADVANCE COMMISSION TO EXPORTERS. REMITTANCE TO A FOREIGN CURRENCY ACCOUNT. REMITTANCE BY WAY OF MEMBERSHIP FEES FOR ANY RELIGIOUS/ SOCIAL ORGANIZATIONS. REMITTANCE ON ACCOUNT OF OVER PRICING OF EXPORTS.
FOREIGN REMITTANCES
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REMITTANCES REQUIRING PRIOR PERMISSION OF THE RESERVE BANK REMUNERATION OF BREAK-BULK AGENT ABROAD. FREIGHT PREPAID ON INWARD CONSOLIDATION. COST OF EURO RAIL, etc. PASSES / TICKETS, OVERSEAS HOTEL RESERVATION etc. FOR INDIAN TRAVELERS.
- CLAIMS BY NEIGHBOURING COUNTRIES FOR SERVICES
RENDERED TO TRAVELERS UNDER CONSOLIDATED TOUR ARRANGEMENT. OPERATING EXPENSES OF INDIAN SHIPPING COMPANIES. SURPLUS COLLECTIONS OF FOREIGN OFFLINE CARRIERS
CONT…. FOREIGN REMITTANCES
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REMITTANCES REQUIRING PRIOR PERMISSION OF THE RESERVE BANK REMUNERATION OF AGENTS APPOINTED ABROAD BY INDIAN SHIPPING COMPANIES. CHARTER HIRE OF FOREIGN SHIPS / AIRCRAFTS. PURCHASE MONEY OF SHIP / AIRCRAFT BY INDIAN AIRLINE / SHIPPING COMPANY. LEGACIES / BEQUESTS / INHERITANCES.
CONT…. FOREIGN REMITTANCES
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REMITTANCES REQUIRING PRIOR PERMISSION OF THE RESERVE BANK OPENING OF OVERSEAS BRANCH / OFFICE. ADVERTISEMENT ABROAD. OPENING OF OVERSEAS BRANCHES BY INDIAN BANKS. THE MAINTENANCE OF AN OVERSEAS BRANCH.
FOREIGN REMITTANCES
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FREE REMITTANCES i.e. ALOWABLE BY AUTHORISED DEALERS COMMISSION TO BUYING AGENTS ABROAD, OF IMPORTERS AND OF EXPORTERS. VALUE OF IMPORT UNDER PENALTY. WAR RISK INSURANCE PREMIUM / BUNKER OR CONGESTION SURCHARGE / PREMIUM FOR EXTENDED INSURANCE COVER. SURPLUS PASSAGE AND FREIGHT COLLECTIONS OF FOREIGN AIRLINES COMPANIES.
CONT…. FOREIGN REMITTANCES
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FREE REMITTANCES i.e. ALOWABLE BY AUTHORISED DEALERS SURPLUS PASSAGE AND FREIGHT COLLECTIONS OF FOREIGN SHIPPING COMPANIES. PASSAGE FARE IN RUPEES OF FOREIGN AIRLINE / SHIPPING COMPANIES. EXPENSES TOWARDS DRY-DOCKING / REPAIR OF SHIP / SURVEY FEES / PURCHASE OF SPARES INCURRED ABROAD. REMITTANCES FOR OTHER PURPOSES. (Ref. slide 19/20)
FOREIGN REMITTANCES
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VALUE OF IMPORT UNDER PENALTY GOODS IMPORTED WITHOUT AUTHORITY BUT LATER ON ALLOWED BY THE CUSTOMS AUTHORITIES TO BE CLEARED AGAINST PAYMENT OF A PENALTY, MAY BE REMITTED TO THE OVERSEAS EXPORTER BY AN AUTHORIZED DEALER, PROVIDED THAT THE AMOUNT OF THE REMITTANCE DOES NOT EXCEED THE c.i.f. VALUE OF THE IMPORT.
FOREIGN REMITTANCES
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SURPLUS PASSAGE AND FREIGHT COLLECTIONS OF FOREIGN AIRLINE /SHIPPING COMPANIES. THE SURPLUS PASSAGE AND FREIGHT COLLECTIONS OF A FOREIGN AIRLINE / SHIPPING COMPANY OPERATING IN OR THROUGH INDIA MAY BE REMITTED TO ITS NON-RESIDENT OPERATORS BY THE AUTHORIZED DEALER WITH WHICH THE COMPANY MAINTAINS ITS BANK ACCOUNT IN INDIA.
FOREIGN REMITTANCES
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REMITTANCES FOR OTHER PURPOSES CONSULAR FEES. CASUAL (GIFT) REMITTANCES. ROYALTY ON BOOKS. ROYALTY ON SOFTWARE IMPORTS. COST OF SERVICES RENDERED BY OVERSEAS PARTIES. DONATIONS. ELECTRONIC DATA-BASE COSTS.
CONT…. FOREIGN REMITTANCES
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REMITTANCES FOR OTHER PURPOSES REPAIRING CHARGES FOR DEFECTIVE GOODS. EXPORT CLAIMS. CONTROLLING CHARGES, LEGAL EXPENSES. PARTICIPATION IN TRADE / BOOKS FAIRS AND EXHIBITION ABROAD. BIDS IN FOREIGN CURRENCY FOR PROJECTS TO BE EXECUTED IN INDIA. APPOINTMENT / POSTING OF CORRESPONDENTS / REPRESENTATIVES BY NEWSPAPERS / PERIODICALS / NEWS AGENCIES.
FOREIGN REMITTANCES
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CASUAL (GIFT) REMITTANCES GIFT REMITTANCES ON OCCASIONS LIKE MARRIAGE, BIRTHDAY FESTIVAL etc., TO SON / DAUGHTER / FATHER / MOTHER / BROTHER / SISTER / GRANDSON / GRANDDAUGHTER. QUANTUM OF EXCHANGE ---- U.S. $ 5000 PER CALENDAR YEAR PER BENEFICIARY BY A FAMILY UNIT. DOCUMENTATION ---- FORM REM AND FORM A2
FOREIGN REMITTANCES
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ROYALTY ON SOFTWARE IMPORTS DOCUMENTATION:
- FORM SRT AND FORM A2.
- A CERTIFIED COPY OF THE AGREEMENT.
- NO OBJECTION CERTIFICATE FROM THE INCOME TAX
AUTHORITIES.
QUANTUM OF EXCHANGE:
- UP TO 30% OF THE INDIAN PUBLISHED PRICE.
- IF THERE IS NO INDIAN PRICE, CONVERT THE LIST PRICE IN
THE CURRENCY OF THE COUNTRY OF PUBLICATION.
- IF THE ROYALTY EXCEEDS 30% , APPROVAL FROM
- DEPT. OF ELECTRONICS, GOVT. OF INDIA IS NEEDED.
FOREIGN REMITTANCES
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DONATIONS BY RESIDENTS TO CHARITABLE / EDUCATIONAL / RELIGIOUS / CULTURAL ORGANIZATIONS ABROAD QUANTUM OF EXCHANGE: UP TO U.S. $ 5000 IN A CALENDAR YEAR TO CORPORATE FRIENDS / RELATIONS. DOCUMENTATION: A LETTER IN DUPLICATE WITH DOCUMENTARY EVIDENCE, SUCH AS BROCHURE INDICATING THE NAME, ADDRESS AND ACTIVITIES OF THE ORGANIZATION, THE TYPE OF SERVICES OFFERED AND THE PURPOSE FOR MAKING THE GIFT / DONATION.
FOREIGN REMITTANCES
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EXPORT CLAIM AUTHORISED DEALER MAY MAKE REMITTANCES IN SATISFACTION OF EXPORT CLAIM ON APPLICATION WITH PARTICULARS SUCH AS: RESERVE BANK’S CODE NUMBER. GR / PP FORM NUMBER. DATE OF SHIPMENT. NAME OF THE COMMODITY. INVOICE VALUE. NAME AND ADDRESS OF THE CLAIMANT, NATURE AND AMOUNT OF CLAIM.
CONT…. FOREIGN REMITTANCES
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EXPORT CLAIM THE APPLICATION SHOULD BE ACCOMPANIED BY DOCUMENTARY EVIDENCE IN SUPPORT OF CLAIM. THE CLAIM AMOUNT SHOULD NOT EXCEED 15% OF THE INVOICE VALUE. THE EXPORT PROCEEDS HAVE BEEN REALIZED AND REPATRIATED TO INDIA. IF THE EXPORTER IS IN THE BUSINESS FOR MORE THAN THREE YEARS AND NOT IN THE CAUTION LIST, REMITTANCE MAY BE ALLOWED WITHOUT ANY PERCENTAGE LIMIT.
FOREIGN REMITTANCES
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BOOKS FAIRS / EXHIBITIONS ABROAD PRIVATE PUBLISHERS, PRINTERS etc. INTENDING TO PARTICIPATE IN BOOK FAIRS/ EXHIBITIONS ABROAD SHOULD APPLY TO AN AUTHORIZED DEALERS. THE AUTHORIZED DEALER MAY RELEASE EXCHANGE UP TO U.S.$ 20,000 OR EQUIVALENT FOR TOTAL EXPENSES. IF THE EXPENDITURE EXCEEDS US $20,000 OR EQUIVALENT THE PARTICIPANT SHOULD APPROACH THE MINISTRY OF HUMAN RESOURCE DEPARTMENT (DEPARTMENT OF EDUCATION), AND ON RECEIPT OF THE AUTHORIZATION FROM THE CONCERNED DEPARTMENT THE AUTHORIZED DEALER WILL RELEASE ADDITIONAL AMOUNT OF FOREIGN EXCHANGE.
FOREIGN REMITTANCES
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APPOINTMENT / POSTING OF CORRESPONDENTS / REPRESENTATIVES BY NEWSPAPERS / PERIODICALS / NEWS AGENCIES INDIAN NEWSPAPERS / PERIODICALS HAVING A MINIMUM DAILY / PER ISSUE CIRCULATION OF 50,000 COPIES AND NEWS AGENCIES RECOGNIZED BY THE CONCERNED ADMINISTRATIVE MINISTRY MAY ENGAGE THE SERVICES OF A CORRESPONDENT / REPRESENTATIVE ABROAD ON FULL TIME / PART TIME BASIS WITHOUT PRIOR PERMISSION OF THE RESERVE BANK. THE AMOUNT OF EXCHANGE REQUIRED TOWARDS MONTHLY MAINTENANCE EXPENSES (SALARY, ALLOWANCES, HOUSE RENT etc) DOES NOT EXCEED THE LIMIT LAID DOWN.
CONT…. FOREIGN REMITTANCES
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APPOINTMENT / POSTING OF CORRESPONDENTS / REPRESENTATIVES BY NEWSPAPERS / PERIODICALS / NEWS AGENCIES. OTHER OFFICE EXPENSES AND EXPENSES TOWARDS TRAVEL OR SPECIFIC ASSIGNMENTS CAN BE REMITTED ON ACTUAL BASIS. ALL REMITTANCES SHOULD BE MADE THROUGH ONE BRANCH OF AN AUTHORIZED DEALER DESIGNATED BY THE COMPANY. THOSE AGENCIES WHO DO NOT FULFILL THE REQUISITE CONDITIONS , BUT WISH TO APPOINT CORRESPONDENT ON TEMPORARY BASIS FOR INTERNATIONAL EVENT OR SPECIFIC ASSIGNMENT SHOULD APPLY TO THE RESERVE BANKFOR PRIOR APPROVAL.
FOREIGN REMITTANCES
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REMITTANCE OF DIVIDENDS TO NON-RESIDENT SHARE HOLDERS GENERAL RULE: THE DIVIDEND, INTEREST AND OTHER INCOME ON SHARES / SECURITIES AND SALE PROCEEDS OF SHARES AND SECURITIES ORIGINALLY PURCHASED OUT OF FUNDS HELD IN THE INVESTOR’S ORDINARY NON- RESIDENT RUPEE (NRO) ACCOUNT ARE REQUIRED TO BE CREDITED TO THE INVESTOR'S NRO ACCOUNT. IN OTHER CASES, AUTHORIZED DEALER MAY REMIT THE AMOUNT OF DIVIDEND, INTEREST , SALE PROCEEDS etc. AFTER DEDUCTING TAXES CREDIT THEM TO THE INVESTOR’S NRE ACCOUNT .
FOREIGN REMITTANCES
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DIVIDENDS DUE TO FOREIGN INSTITUTIONAL INVESTORS (FII) DIVIDENDS EARNED ON INVESTMENTS IN INDIA BY A FOREIGN INSTITUTIONAL INVESTOR (FII) MAY BE CREDITED BY THE DESIGNATED BRANCH OF AN AUTHORIZED DEALER TO THE FII’S RUPEE ACCOUNT WITH THE BRANCH. IT CAN TRANSFER NET OF TAXES FROM THE FII RUPEE ACCOUNT TO ITS FOREIGN CURRENCY ACCOUNT WITHOUT PRIOR PERMISSION OF THE RESERVE BANK.
FOREIGN REMITTANCES
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REMITTANCE OF INTEREST INTEREST ON BONDS AND / OR DEBENTURES ISSUED TO NON-RESIDENTS MAY BE REMITTED THROUGH AN AUTHORIZED DEALER AGAINST AN APPLICATION. ON RECEIPT OF THE APPLICATION TOGETHER WITH PARTICULARS AND THE DOCUMENTS THE NET AMOUNT (AFTER TAXES) AFTER VERIFYING THAT THE PERMISSION FOR ISSUE OF BONDS / DEBENTURES WAS OBTAINED , MAY ALLOW THE REMITTANCE. INTEREST DUE TO NON-RESIDENTS WHO ARE NOT ELIGIBLE FOR HAVING REMITTED, MAY BE CREDITED TO THEIR NRO RUPEE ACCOUNT.
FOREIGN REMITTANCES
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REMITTANCE OF PROFIT (BY FOREIGN COMPANIES) REMITTANCES OF PROFIT EARNED IN INDIA BY BRANCHES OF FOREIGN COMPANIES TO THEIR HEAD OFFICES OUTSIDE INIDA ARE SUBJECT TO PRIOR PERMISSION OF THE RESERVE BANK. AN APPLICATION FOR PERMISSION FOR REMITTANCE OF PROFIT WITH THE DOCUMENTS AS FOLLOWS: A CERTIFIED COPY OF THE AUDITED BALANCE SHEET, AND LOSS AND PROFIT ACCOUNT FOR THE YEAR TO WHICH THE PROFIT RELATES.
CONT… FOREIGN REMITTANCES
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REMITTANCE OF PROFIT (BY FOREIGN COMPANIES)
- A CERTIFICATE FROM AUDITORS, CONFIRMING
REMITTABLE AMOUNT, AND COMPLIANCE OF COMPANIES ACT 1956, AND COMPLIANCE OF THE PROVISION OF FEMA 1999. INCOME TAX ASSESSMENT ORDER AND DOCUMENTARY EVIDENCE OF PAYMENT. DECLARATION ON REMITTANCE OF PROFIT IS PURELY EARNED IN THE NORMAL COURSE OF BUSINESS.
FOREIGN REMITTANCES
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REFUND OF INCOME TAX TO NON-RESIDENT FIRMS / COMPANIES NON RESIDENT FIRMS/COMPANIES: AUTHORIZED DEALERS MAY REMIT REFUND OF INCOME TAX TO FOREIGN FIRMS/ COMPANIES IF THEY ARE SATISFIED THAT THE TAX AMOUNT FOR WHICH THE REFUND HAS BEEN CLAIMED WAS DEDUCTED FROM THE AMOUNT THE ORIGINALLY REMITTED. THE APPLICATION ON FORM A2 SUPPORTED BY NECESSARY DOCUMENTS SHOULD BE SUBMITTED.
CONT…. FOREIGN REMITTANCES
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REFUND OF INCOME TAX TO NON-RESIDENT FIRMS / COMPANIES FOREIGN NATIONAL NON-RESIDENTS: AUTHORIZED DEALER MAY REMIT WITHOUT REQUIRING PRIOR APPROVAL OF THE RESERVE BANK THE AMOUNT TOWARDS REFUND OF INCOME TAX AFTER VERIFYING THE ORIGINAL ASSESSMENT ORDER AND AMOUNT RETAINED FOR PAYMENT OF TAX FROM THE AMOUNT ORIGINALLY REMITTED.
FOREIGN REMITTANCES
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ELIGIBILITY CRITERIA FOR REMITTANCE OF INCOME TO NON-RESIDENTS
AUTHORIZED DEALERS MAY ALLOW REMITTANCE OF INCOME EARNED IN INDIA BY FOREIGN NATIONALS PERMANENTLY RESIDENT OUTSIDE INDIA, PROVIDED THE BENEFICIARY BELONGS TO :
- A FOREIGN NATIONAL OF INDIAN ORIGIN, PERMANENTLY
SETTLED IN A FOREIGN COUNTRY BEFORE THE INTRODUCTION OF EXCHANGE CONTROL IN INDIA i.e. 8TH JULY 1947.
- A FOREIGN NATIONAL WHO HAS RETIRED FROM INDIA AFTER
AVAILING OF RETIRING FACILITIES.
- AN EMIGRANT FROM INDIA IN WHOSE CASE THE RESERVE